Income inequality in India refers to the unequal distribution of wealth and income among its citizens. According to the CIA World Factbook, the Gini coefficient of India, which is a measure of income distribution inequality, was 35.2 in 2011, ranking 95th out of 157.[1] Wealth distribution is also uneven, with one report estimating that 54% of the country's wealth is controlled by millionaires, the second highest after Russia, as of November 2016.[2] The richest 1% of Indians own 58% of wealth, while the richest 10% of Indians own 80% of the wealth. This trend has consistently increased, meaning the rich are getting richer much faster than the poor, widening the income gap.[2] Inequality worsened since the establishment of income tax in 1922, overtaking the British Raj's record of the share of the top 1% in national income, which was 20.7% in 1939–40.[3]
Poor kids from a razed construction workers' slum look at their well-to-do neighbours in Kondapur.
According to Thomas Piketty, it is difficult to accurately measure wealth inequality in India because of large gaps in income tax data. Official data from 1997-2000 contained many inconsistencies, while no data was published between 2000-2012. Then, in 2013, official income tax figures showed that only 1% of Indians paid tax that year, while only 2% filed a tax return. This lack of reliable data makes it essentially impossible to make significant, numerical conclusions about income inequality in India.[4][5]
Since much of the population is not represented in income-tax databases, most of the calculations (such as NSSO) are based on consumption-expenditure data instead of income data.[6] According to the World Bank, the Gini coefficient in India was 0.339 in 2009,[7] down from previous values of 0.43 (1995–96) and 0.45 (2004–05).[8] However, in 2016, the International Monetary Fund, in its regional economic outlook for Asia and the Pacific, said that India’s Gini coefficient rose from 0.45 (1990) to 0.51 (2013).[9]
Credit Suisse’s Global Wealth Databook for 2014 reports that the bottom 10% of the Indian society owned merely 0.2% of national wealth,[11] while the richest 10% have been getting steadily richer since 2000.
Social Class (%)
Wealth Share (%)
Bottom 10
0.2
10 - 20
0.4
20 - 30
0.8
30 - 40
1.3
40 - 50
1.8
50 - 60
2.6
60 - 70
3.8
70 - 80
5.7
80 - 90
9.4
Top 10 Top 1
74 41
Causes
N. C. Saxena, a member of the National Advisory Council, suggested that the widening income disparity can be accounted for by India's badly shaped agricultural and rural safety nets. "Unfortunately, agriculture is in a state of collapse. Per capita food production is going down. Rural infrastructure such as power, road transport facilities are in a poor state," he said. "All the safety net programmes are not working at all, with rural job scheme and public distribution system performing far below their potential. This has added to the suffering of rural India while market forces are acting in favour of urban India, which is why it is progressing at a faster rate."[12]
Impact
India's economy continues to grow with its GDP rising faster than most nations. But a rise in national GDP is not indicative of income equality in the country. The growing income inequality in India has negatively impacted poor citizens' access to education and healthcare. Rising income inequality makes it difficult for the poor to climb up the economic ladder and increases their risk of being victims to poverty trap.[13] People living at the bottom 10% are characterized by low wages; long working hours; lack of basic services such as first aid, drinking water and sanitation.[8]
^"GINI index (World Bank estimate) - Data". data.worldbank.org.
^ ab. southasia.oneworld.net. Archived from the original on 2019-05-20. Retrieved 2015-12-12.
^Nair, Remya (3 May 2016). "IMF warns of growing inequality in India and China". Livemint.
^"World Wealth Report - Compare the data on a global scale". The Wealth Reports. Leading with Global Insights. The Industry Recognized Benchmark for Wealth Management Trends. www.worldwealthreport.com.
^S, Rukmini (8 December 2014). "India's staggering wealth gap in five charts". The Hindu.
^"'Reckless disinvestment in PSUs has exposed BJP's capitalistic mindset'". The Hindu. 23 October 2016.
February 21, 2023
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Income inequality in India refers to the unequal distribution of wealth and income among its citizens According to the CIA World Factbook the Gini coefficient of India which is a measure of income distribution inequality was 35 2 in 2011 ranking 95th out of 157 1 Wealth distribution is also uneven with one report estimating that 54 of the country s wealth is controlled by millionaires the second highest after Russia as of November 2016 2 The richest 1 of Indians own 58 of wealth while the richest 10 of Indians own 80 of the wealth This trend has consistently increased meaning the rich are getting richer much faster than the poor widening the income gap 2 Inequality worsened since the establishment of income tax in 1922 overtaking the British Raj s record of the share of the top 1 in national income which was 20 7 in 1939 40 3 Poor kids from a razed construction workers slum look at their well to do neighbours in Kondapur Contents 1 Income gaps 1 1 Class divide 2 Causes 3 Impact 4 ReferencesIncome gaps EditAccording to Thomas Piketty it is difficult to accurately measure wealth inequality in India because of large gaps in income tax data Official data from 1997 2000 contained many inconsistencies while no data was published between 2000 2012 Then in 2013 official income tax figures showed that only 1 of Indians paid tax that year while only 2 filed a tax return This lack of reliable data makes it essentially impossible to make significant numerical conclusions about income inequality in India 4 5 Since much of the population is not represented in income tax databases most of the calculations such as NSSO are based on consumption expenditure data instead of income data 6 According to the World Bank the Gini coefficient in India was 0 339 in 2009 7 down from previous values of 0 43 1995 96 and 0 45 2004 05 8 However in 2016 the International Monetary Fund in its regional economic outlook for Asia and the Pacific said that India s Gini coefficient rose from 0 45 1990 to 0 51 2013 9 According to the 2015 World Wealth Report India had 198 000 high net worth individuals with a combined wealth of 785 billion 10 Class divide Edit Year Minimum Net Worth 000 rupees Population1687 117 6 0031700 124 6 1721725 124 6 8201750 120 7 4691775 120 8 1171800 129 8 7651825 1281850 128 4 6051875 136 2 6671900 228 3 1041925 759 4 1091950 2 057 4 9681975 6 784 12 5612000 49 457 43 2672021 160 062 147 717Credit Suisse s Global Wealth Databook for 2014 reports that the bottom 10 of the Indian society owned merely 0 2 of national wealth 11 while the richest 10 have been getting steadily richer since 2000 Social Class Wealth Share Bottom 10 0 210 20 0 420 30 0 830 40 1 340 50 1 850 60 2 660 70 3 870 80 5 780 90 9 4Top 10 Top 1 74 41Causes EditN C Saxena a member of the National Advisory Council suggested that the widening income disparity can be accounted for by India s badly shaped agricultural and rural safety nets Unfortunately agriculture is in a state of collapse Per capita food production is going down Rural infrastructure such as power road transport facilities are in a poor state he said All the safety net programmes are not working at all with rural job scheme and public distribution system performing far below their potential This has added to the suffering of rural India while market forces are acting in favour of urban India which is why it is progressing at a faster rate 12 Impact EditIndia s economy continues to grow with its GDP rising faster than most nations But a rise in national GDP is not indicative of income equality in the country The growing income inequality in India has negatively impacted poor citizens access to education and healthcare Rising income inequality makes it difficult for the poor to climb up the economic ladder and increases their risk of being victims to poverty trap 13 People living at the bottom 10 are characterized by low wages long working hours lack of basic services such as first aid drinking water and sanitation 8 14 15 References Edit Country Comparison Gini Index cia gov Central Intelligence Agency Archived from the original on 4 June 2011 Retrieved 3 February 2020 a b India second most unequal country after Russia Report dailypioneer com 4 September 2016 Retrieved 1 March 2019 From British Raj to Billionaire Raj Economic and Political Weekly 7 October 2017 Rowlatt Justin 2 May 2016 Indian inequality still hidden BBC Income Inequality and Progressive Income Taxation in China and India 1986 2015 PDF Archived from the original PDF on 10 May 2017 https www wider unu edu sites default files wp2015 025 pdf bare URL PDF GINI index World Bank estimate Data data worldbank org a b India still suffers from huge income gap southasia oneworld net Archived from the original on 2019 05 20 Retrieved 2015 12 12 Nair Remya 3 May 2016 IMF warns of growing inequality in India and China Livemint World Wealth Report Compare the data on a global scale The Wealth Reports Leading with Global Insights The Industry Recognized Benchmark for Wealth Management Trends www worldwealthreport com S Rukmini 8 December 2014 India s staggering wealth gap in five charts The Hindu Income gap rises in India NSSO Livemint Does income inequality hurt economic growth Quartz qz com Retrieved 2018 09 26 http thewire in 39495 as nda govt celebrates two years a citizens report underscores its failures on social issues Citizens Report Underscores Modi Government Failures on Social Issues Reckless disinvestment in PSUs has exposed BJP s capitalistic mindset The Hindu 23 October 2016 Retrieved from https en wikipedia org w index php title Income inequality in India amp oldid 1140622364, wikipedia, wiki, book, books, library,
