Asian giants like India and China might be growing at more than seven percent in the last few years, but the fast growth has not been equal, said Asian Development Bank (ADB) in its latest outlook. “…While the region flourishes, the depressing reality is the march to prosperity has also seen a startling rise in inequality,” said the ADB in its latest outlook 2012.

The report said, “Worrying inequality has risen in Peoples Republic of China, India, and Indonesia - the three most populous nations that have driven the region's rapid growth.”

The report argues that there is lack of opportunities in the rising Asian economies. “It can also be basis or social tension, undermining the quality of government and leading to troubling populist politics,” said ADB's chief economist Changyong Rhee.

“Apart from income inequality the more serious problem is inequality of opportunity such as access to education, health, and better infrastructure,” he added.

"Asia's rapid growth is leaving millions behind, causing a widening gap between rich and poor that threatens to undermine the region's stability," said the Manila-based Bank.

According to the report, “the Gini-coefficient - the most common measure of inequality - rose from 38 to 47 in the past two decades. Nearly 20 percent of total income went to the top 5 percent in most countries with available data. If inequality had remained stable, it is estimated 240 million more people could have been lifted out of poverty over the same period.”

However, the report added that India's economic growth rate is expected to remain subdued at 7 percent during the current fiscal, mainly on account of the impact of continuing global crisis.

The ADB's growth projection at 7 percent for 2012-13 is lower than government's forecast of 7.6 percent.

In the Asian region, the report said that economic growth in the region would decline to 6.9 percent from 7.2 percent in 2011-12, on account of continued uncertainty in eurozone and slump in global trade. 

Referring to India, the report said that the average rate of inflation, after remaining around 9 percent for most part of the last fiscal, is expected to be 7 percent in 2012-13.

Read the report

Asian Development Outlook - Fast facts