India's recent economic growth, in a society where most remain poor and benefits are unequally distributed, poses dilemmas for policy makers and analysts. Do rapid growth and widespread inequality necessarily go hand in hand? Can inequality be lessened without impeding the growth essential to sustain social spending? What is a sustainable pattern of growth?

India, historically committed to a path of social democratic progress, is taking important steps to mitigate social risk and inequality: Examples include the National Rural Employ-ment Guarantee Act, the Right to Education Act, legislation on food security, as well as introduction of innovative delivery mechanisms. Building on these initiatives, India's challenge now is to create an integrated political vision based on a three-fold commitment: to the values of social justice, to the instruments of markets, and to the processes of democracy.