The popular measure of income inequality is in terms of Lorenz Curve or Gini Coefficient. Gini Coefficient ranges from 0 to 1; the larger the coefficient, the greater the inequality. Thus ‘0’ Gini Coefficient represents perfect equality, and 1 represents perfect inequality. Therefore, to measure income inequalities in India, we use the Gini ratios of distribution of per capita monthly consumption expenditure. Since early 1980s, India has been experiencing high growth rates. In the pre-reform period between 1983 and 1993-94, there was marginal decline in inequalities both in rural and urban areas. The Gini ratio of monthly per capita consumption expenditure (MPCE) in rural areas declined from 0.31 to 0.29. However, the difference between rural and urban MPCE increased. The ratio of rural MPCE to that of urban declined from 0.66 to 0.61 during this period. In the post-reform period between 1993-94 and 2004-05, inequalities in income distribution of both the rural and urban areas have increased. There was also further increase in income disparities between rural and urban areas. The Gini ratio of rural MPCE increased marginally from 0.29 to 0.30. For urban areas too it increased marginally from 0.35 to 0.36. The ratio of rural MPCE to urban MPCE further declined from 0.61 to 0.56. Thus, although economic reforms have brought about high economic growth rates, the income distribution is worsening. Further, although there has been poverty reduction, it has been on a slower rate. The poor have improved their consumption marginally, but the rich have become richer with the result that there is growing income inequality between the rich and the poor.