Addressing India’s income inequality
Widening income inequality weakens public support for liberal economic reforms
Thomas Piketty has thrown a flaming dart into the Indian economic debate. In a new paper written in collaboration with Lucas Chancel, the superstar French economist has shown that income inequality in India is now at its highest level since income tax was first levied in 1922. The title of the study is suitably eye-catching—Indian Income Inequality 1922-2014: From British Raj To Billionaire Raj. The data here has quite naturally sparked off a lot of excited debate about the nature of Indian economic policy.