The impact of inequality in hindering social outcomes is discussed. Although it may appear on the basis of limited data, in the Indian context, that growth alone is the main driver in improving social outcomes, including poverty reduction; and that increased inequality that is a by-product of the Indian non-inclusive growth process does not hinder social development, such a conclusion advanced recently in the Economic Survey 2020–21 is based on possibly insufficient analysis of the data. It is demonstrated that the apparent favourable association, which is counter-intuitive, between income inequality measures and social outcomes, is possibly due to both being associated with growth and could therefore be revealing a spurious relationship when considered in isolation.
