Selective Economic Progress: The Growth of Income-Inequality in India

Abstract

This thesis quantitatively dissects the trend in income-inequality in India, as affected by various other macroeconomic factors, between 2004 and 2014, with the aim of constructing a viable model to predict future income-inequality levels. Causation between some of the potential affecting factors and income inequality is identified and is in line with the hypothesis that there is a causational relationship between these macroeconomic factors and income inequality. An analysis of the trends in income inequality allowed for a trend-based prediction model to be constructed and implemented. Statistical linkage between income- inequality and its causes allowed for another more comprehensive income-inequality prediction model to be constructed. The comprehensive model accounted for the effect of the causational factors for income inequality determined by this thesis.