In this presentation, while examining the comparability and consistency of the National Sample Survey data from the 55th round with the earlier rounds on consumption expenditure in India, the authors bring out how quantitative adjustments made merely for greater compatibility with NAS data in the 55th round led to a sharp decline in most poverty and inequality estimates. In a detailed re-examination, the authors bring out the trends in within and inter state rural and urban inequalities and interpersonal wage distributions which indicate that economic inequality increased sharply during the 1990s in all its aspects and, as a result, poverty reduction deteriorated markedly despite higher growth. This has implications for policy, and lessons for future survey design.

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October 29, 2006.