BENGALURU (Reuters) – The Indian economy is expected to maintain its status as the fastest-growing major economy in the coming years. However, most independent economists and policy experts polled by Reuters doubt that this growth will significantly reduce stark economic inequality.
Despite over 8% economic growth last fiscal year and a roaring stock market in Mumbai that is easily one of the world’s most expensive, New Delhi still distributes free food grains to more than 800 million of its 1.4 billion people.
Prime Minister Narendra Modi, starting his third term with regional party support, has largely retained his previous government ministers.
The electoral setback was attributed to rising economic inequality, which is currently at its highest level in decades. Additionally, high youth unemployment also contributed to the reasons for the party’s loss.
Eighty-five percent of economists and policy experts polled by Reuters doubt significant reductions in economic inequality over five years. Among them, 21 experts indicated they had no confidence in such improvements at all.
“Acknowledging that it is a problem will be a good first step … Currently, reduction of economic inequality is not a policy objective of decision-makers,” said Reetika Khera, a development economist at the Indian Institute of Technology in New Delhi.
Moreover, the poll findings underscore the need for economic policies tailored to ensure that India economic inequality is addressed.
By prioritizing inclusive growth strategies, India can mitigate the adverse effects of economic inequality and pave the way for more balanced and sustainable development in the future.
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