India, May 28 -- When Prime Minister Narendra Modi urged Indians to cut down on gold purchases and foreign travel amid concerns over India's external balance, he was subtly hinting towards a deeper problem in the Indian economy. There is now a significant cohort of Indians whose lifestyle is at par with the rich in high-income countries and who are way ahead of how ordinary Indians earn and spend. This cohort seems to have become bigger over time, as is seen in India's rising trade deficit after economic reforms. But, statistically speaking, India's inequality data points in the opposite direction: inequality has fallen, not increased after economic reforms. How does one square this (counter-intuitive statistical) circle on inequality? Le...