Growth today is being enjoyed by the middle class. The poor are still being left out now but this is a whole lot better than in the 80′s where the only people enjoying “growth” were the politically connected.

Take a look at this. For all the “right” noises, this is one unpalatable contrarian view, supported only by facts.
http://endpovertyinsouthasia.worldbank.org/four-incovenient-truths-about-indias-economic-growth

General,
I was referring to the govt of India nearing bankruptcty in 1991 when we had to pledge our gold for USD.

///Indian economy prospered for about 5000 years using food grains as ///

there was no continious prosperity for 5000 years. there was famine, draught and starvation deaths frequently. whenever monsoon failed, or due to wars, etc.

and cotton farmers sucide occurs now only in AP and Vidharbaa while cotton is grown in many other areas of the nation like in TN, Punjab, , UP, Bihar, etc ; hence more local factors and indebtedness,
reckless borrowing to sink borewells, etc may be the correct reasons.

blaming LPG for all this is not rational. the delivery mechanism for farm susidies is lop-sided and leaking like a sieve, where the major portion is siphoned off or is enjoyed by rich farmers…

The Dhirubhai Ambani’s of today don’t need a license to open extra businesses, but rickshaw pullers in Delhi cant have more than one rickshaw, auto rickshaws need to be licensed. the license raj is very much present for these people.

how would they progress in the business they know? a case of capitalism for the rich and socialism for the poor.

It is time to call the bluff of economics professors. Inequalities does not arise from globalization but from impact of fiat currency system.

When will Economists? acknowledge that tokens used as medium of exchange should have redemption obligation to be valid……. when invalid tokens are used in transactions unfair aggregation of wealth will happen isn’t it obvious…..?

But did we hear about farmers committing suicide in large numbers? bankruptcy happened for few Mumbai biz men only…… not for people of India…….

BTW What do we call fiat(fake) currency system Black or White?

Indian economy prospered for about 5000 years using food grains as currency? food = energy = currency = no inflation = white economy = prosperity for all (if caste system did not exist)……

the concepts of inequality led to the concepts of ‘concentration of wealth’ during our socialistic era, resulting in license raaj and confiscatory tax regime (99 % in 1971) meant to ‘redistribute’ wealth. we know what happened as a result : black economy, corruption and more poverty due to stagnant economy and finally bankruptcy.

Economic growth can follow globalization – money flows, international trade, financial markets get connected etc. But not always. You can have negative growth as well. It is also possible that positive economic growth can be highly localized – to urban areas for example.

So if inequality increases when the rich get richer, then globalization and economic growth can cause severe inequality. This does not in any way mean that economic growth or globalization are bad. It only points to an inefficiency in spreading the wealth. Which is where policy comes in.

Apart from policies for infrastructure and manufacturing that can hugely address this inefficiency, there are others like telecom which can unleash tremendous potential. Think of the changes possible if DSL were available at second tier and third tier towns leave alone the villages of India.

If economic growth doesn’t save people from poverty, tell us about your policy prescriptions that will save people from it when economic growth is absent.

As an aside tell us about how economic isolation (of any degree) will increase equality without making everyone equally poverty stricken.