The document summarizes Kuznets' hypothesis that income inequality within countries initially rises and then falls with economic development. It provides evidence from Kuznets' 1955 study showing higher inequality in less developed countries (LDCs) like India compared to developed countries (DCs) like the UK and US. Kuznets attributed the inverted-U shape relationship between development and inequality to structural changes in early industrialization benefiting high-income groups before policies and social changes in later stages reduced the gap. The document also discusses measures of inequality like the Gini coefficient and debates around Kuznets' hypothesis.