The relationship between growth and inequality of income has been of considerable concern in the development literature. One postulate that has received much attention is that as development process proceeds, income inequality first rises and then falls with development. A graphical representation of increase in per capita income on the ‘X’ axis representing economic development and a measure of inequality on the ‘Y’ axis would show a curve in the shape of an inverted ‘U’. This has come to be called as inverted-U hypothesis of the relationship between growth of income and inequality, and is associated with Simon Kuznets. It is now famously called as ‘Kuznets Curve’. Kuznets observed falling inequality of incomes in some of the developed countries in the late19thcentury. He visualised that inequality was falling after the early rise in the peak of industrialisation period. He reasoned that as these economies initially began their transformation from their dominant agricultural sector base to more of industrialisation and urbanisation, inequalities increased. But later, inequalities decreased as migration of people to urban areas (and their adaptation to political power structure leading to enactment of legislation in their interests), resulted in a rise in their incomes. It is Kuznets hypothesis that made many believe that higher inequality initially distributes more income to the rich, who as real savers and investors, propel faster growth.