The theory of trickle-down economics assumes that boosting business investment via tax cuts, deregulation, and subsidies will eventually benefit everyone especially the poor through job creation and increased consumption. In India, however, evidence shows that rapid growth hasn’t always “trickled” to the most disadvantaged.

• .Welfare vs. Corporate Incentives :- Recent policy shifts show reduced spending on welfare schemes—in nutrition, mid-day meals, LPG subsidies, skill development, housing, and agricultural supports—while providing generous incentives to businesses.
• Displacement & Land Expropriation :- Infrastructure, mining, industrial zones, and SEZs often require land acquisition that displaces tribal and rural communities. Losses include forests, customary lands, homes, livelihoods, and identity. Compensation is mostly monetary and based on market value, often ignoring non-material losses.
• Unequal Benefits :- Groups like Scheduled Tribes (STs), Scheduled Castes (SCs), women, and religious minorities gain the least—even when growth is high. SEZs and mining may bring employment, but frequently not for those who were displaced.
• Policy and Implementation Gaps :- Laws like the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement (2013) try to provide safeguards. But poor implementation, weak land records, gaps in who gets rehabilitation, and exclusion of marginalized groups weaken their effectiveness.