Analysis of relationship of GDP growth with consumption and income inequality

Abstract

Income and consumption are two major macroeconomics factors that are widely studied in research papers. As there has been a shift in the nature of Indian economy from agrarian to manufacturing to services based, different social classes residing in urban and rural areas. Further the share of benefits received from growth in the country’s GDP has not been uniformly distributed across different religions, economic classes and locations. Therefore, it becomes interesting to analyse the factors causing variation in the household income and consumption level across the years as India strives to achieve greater economic growth.