State of the Indian economy: Unequal, uneven distribution of wealth

The income gap between states is growing and the pain of inflation is worse for those falling behind

Thomas Piketty’s seminal work Capital in the Twenty-First Century bared the growing inequality in Europe and the United States since the 18th century. He argued that when the rate of return on capital outstrips economic growth, it results in unequal distribution of wealth.

The coronavirus pandemic made unequal wealth distribution worse, leading to a debate on K-shape recovery.

An analysis of data shows that the per capita income (net state domestic product per person) of the top five Indian states was 3.3 times higher than the bottom five in 2021-22.
 

The gap has increased in the last decade. In