ABSTRACT

The period after market reforms, between 1990 and 2010, was one of very high growth for the Indian economy. There is, however, no clear consensus on the impact of the reforms and the ensuing growth on the lives and well-being of the poor in India. To provide greater clarity on this question, in this chapter, I analyze changes in the ownership and quality of four consumer durables that were affected by market reforms: televisions, electric fans, mobile phones, and two-wheelers. I find that, for all four goods, there was a significant increase in the average ownership levels, especially among households in the lower and middle deciles of the distribution of consumption expenditure, with the increase being especially pronounced in the urban areas. I also find significant qualitative improvements in the televisions, mobile phones, and two-wheelers available during the period under consideration. Based on this evidence, I conclude that, especially in urban India, market reforms have generated a significant improvement in the consumption baskets of Indians in the lower and middle deciles of the distribution of consumption expenditure.