India’s Spending Patterns Reveal Inclusive Growth and Persistent Inequality

The article looks at India’s spending patterns.

It asks what these patterns say about inclusive growth and inequality.

Inequality is described as bending inward.

The article uses two standard tools to measure fairness.

One of these tools is called the Lorenz curve.

It asks how much of the country’s total spending belongs to different groups.

If spending were perfectly equal, the poorest 40% would account for 40% of it.

In reality, the poorest 40% account for much less.

This shows that spending is not shared evenly.