• ASHOMI KALITA

In the literature, the relationship between economic growth and income inequality has not been solved properly till now. A considerable amount of debate is still going on regarding the relationship between the two. In this study, an endeavor has been made to explore the relationship between economic growth and income inequality in India over the time period 1970-2013 by applying time series techniques such as johansen cointegration test, VECM and Granger-Causality test. Johansen Cointegration test suggests that long run relationship exists between economic growth and income inequality in India over the study period. From the granger causality test it is found that the direction of causality is running from income inequality to economic growth, that means income inequality is not detrimental to economic growth rather it enhances economic growth in case of India. However the study does not support more income inequality to enhance most needed economic growth in India . Because income inequality at higher level retards growth by creating the problems of socio-political instability.

Economic Growth, Income Inequality,Unit Root, Cointegration, Causality

"ECONOMIC GROWTH AND INCOME INEQUALITY IN INDIA: A TIME SERIES ANALYSIS", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.6, Issue 6, page no.359-365, June 2019, Available :http://www.jetir.org/papers/JETIR1906W47.pdf

"ECONOMIC GROWTH AND INCOME INEQUALITY IN INDIA: A TIME SERIES ANALYSIS", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.6, Issue 6, page no. pp359-365, June 2019, Available at : http://www.jetir.org/papers/JETIR1906W47.pdf