- Income Inequality:
- Gini coefficient in income increased from 0.52 (2004-05) to 0.55 (2011-12).
- Inequality in income and wealth is much higher than consumption.
- People with financial/educational resources multiplied wealth faster than the poor.
- Sectoral Imbalances:
- Economy jumped from agriculture to services, ignoring manufacturing.
- Manufacturing sector faced bottlenecks (land, transport, electricity, labor laws).
- Rural economy remained weak, leading to less demand for manufactured products.
- This resulted in low growth in rural productivity.
- Jobless Growth: Not enough well-paid jobs created for the youth.
- Persistent Poverty: Many Indians remained poor, deprived of basic amenities.
- Governance Issues: Poor governance and corruption remained constraints.
- Redistribution vs. Opportunity: Reforms did not fully address equality of opportunity.