Page 150 - ES 2020-21_Volume-1-2 [28-01-21]

Inequality and Growth: Conflict or Convergence? 133

assets or the ratio of the consumption of top 5 per cent of the population to bottom 5 per cent of
the population. Also, the relationships remain similar across different time periods. Figure 12
highlights the strong positive correlation between the inequality in 2004 with inequality in 2011.
The states which had lower inequality in 2004 also experienced low inequality in 2011 as well
and vice versa.
Figure 11: Relationship between consumption inequality
and asset inequality among Indian States

(Correlation=0.33)
0.85
0.80
0.75
0.70
Gini Based on Assets 0.55
0.65
0.60
0.50
0.45
0.40
0.35
0.30
0.25
0.20
0.20 0.22 0.24 0.26 0.28 0.30 0.32 0.34 0.36 0.38 0.40
Gini based on Consumption
Source: Gini based on Assets from All India Debt and Investment Survey (AIDIS) conducted by NSS
70th Round 2012-13, Ratio of top 5 per cent to bottom 5 per cent using MPCE (Monthly per capita
expenditure) data from NSS Consumption Surveys

Figure 12: Relationship between consumption based gini coefficient for the
year 2004 and gini coefficient for the year 2011 in Indian states

0.4

0.35

0.3
Gini 2011 0.25

0.2

0.15
0.15 0.20 0.25 0.30 0.35 0.40
Low Gini 2004 High
Source: Survey calculations based on NSS consumption expenditure data for 2004-05 and 2011-12.

4.9 Figure 13 shows the correlation between inequality measured by Gini based on consumption
for the period 2004 and 2011 with the per capita net state domestic product. The figure showcases
that the relationship is almost identical in 2004 and 2011.