There is widespread agreement that the growth process that has recently launched India on to a higher growth path has been unequalising
Macintosh and Roy, eds., Economic Decentralisation and Public Management Reform (Cheltenham:Edward Elgar Publishing, 1999); Lance Taylor and Edmar Bacha, "An Unequalising
Spiral: A First Growth Model for Belinda," Quarterly Journal of Economics 90 (1976): 2.
This outcome is due to the unequalising
nature of land distribution through private land market.
Redistribution policies, such as land reforms, may be necessary to set up the economic and political conditions necessary to ensure that subsequent economic growth is not highly unequalising
As in Bacha-Taylor formulation (1976), it is possible to conjure up an "unequalising
spiral of growth" in which "a rise in skilled employment, in relative demand for luxury goods, and in investment in the luxury sector feed on one another, accentuating inequalities all along" [Bardhan (1988)].