Abstract:
We analyze polarization in India roughly in the past two and half decades using consumption
expenditure data. We show that polarization has increased sharply since the 1990s, reversing the earlier
trend. On multidimensional polarization, we show that several pre-existing cleavages (caste,
rural-urban, state, region) have accentuated. Overall, our results suggest that the high growth that
India has been witnessing in recent years and the pro-market reforms initiated since 1990s have been
associated with widening disparities. Comparing polarization and inequality, we find similarities, but
also some differences. Our results therefore underscore the importance of studying polarization as
distinct from traditional inequality.
