Interconnecting Socioeconomic Inequalities, Informal Markets and Livelihood Systems: A Review of Sustainable Development Pathways in India

Abstract

Sustainable development in India is a result of a complex mix of structural socioeconomic inequalities, market dynamics, and diverse livelihood systems. Although the country has experienced continuous economic growth, significant disparities still exist among social groups, regions, and employment structures that determine who has access to opportunities and who can withstand economic shocks. This study discusses and integrates literature results on the impact of education, gender, and social identity inequalities that are compounded by the informal market structures and employment patterns in determining sustainable development outcomes. It also sets out the significant role of economic participation through informal and community-level markets in the face of precarious livelihoods with income instability and inadequate social protection. Moreover, it considers the contributions of policy institutions, social protection mechanisms, and inclusive growth strategies toward reducing vulnerability and enhancing resilience. By integrating research and evidence from four tightly interlinked areas, structural inequalities, market systems, livelihood dynamics, and institutional pathways, this review develops a holistic framework for understanding sustainable development challenges in India. The results reveal a strong demand for multi-dimensional, inclusive, and context, specific policy approaches that would simultaneously tackle inequality, market participation, and livelihood security as the keys to the progress of sustainable development. This study adopts a systematic narrative review approach, synthesizing peer-reviewed literature across development economics, labour studies, and policy research to develop an integrated conceptual framework.