Polarization, Inequality, and Growth: The Indian Experience

One issue that has attracted considerable attention recently among scholars interested in inequality and conflict is polarization. We analyze polarization in India over roughly the past three decades using consumption expenditure data. We show that both bipolarization and multidimensional polarization (on several dimensions: rural-urban, state, region) have increased since the 1990s. In the case of bipolarization, this is a reversal from an earlier trend (in the 1980s). Overall, our results suggest that the high growth that India has witnessed since the 1990s has been associated with widening disparities. Comparing polarization and inequality trends, we find similarities, but also some differences; we also show how the study of polarization can provide different insights. Our results therefore underscore the importance of studying polarization as distinct from traditional inequality.