Extending the Kuznets’ hypothesis of economic growth (KHEG) an attempt is made in the present paper to examine its validity for the Indian Economy during the period 1980-81 through 1997-98. The results provide an econometric explanation for the increase in inequality after 1990-91 and seek to defend the strategy of economic development followed in India. The conclusions suggest that the reason for the inequalities lies in the social and political restructuring taking place in the Indian economy. Need therefore is to investigate the social decomposition of the economic inequality.