Some studies have stated that there existed deep rooted inequalities in Indian society and the economic reform policies initiated by the government. Since 1991, the reforms further aggravated the inequalities. Reforms have led to an increase in the income of those who were already rich. Quality of consumption of only high income groups increased, economic growth has not trickled down to the poorer sections of the society.
Growth has been concentrated only in some selected areas in the service sector such as telecommunication, information technology, finance, entertainment, travel, hospitality services, real estate and trade. Vital sectors such as agriculture and industry which provide livelihoods to millions of people in the country have not been benefitted much from reforms thereby increasing income disparities. Besides, large scale production has been promoted under reforms at the cost of small scale industries again leading fo concentration of economic power with large industrial houses and MNCs.