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Inequality in India

07.07.2025

 

Inequality in India

 

Context :

India has been ranked as a moderately low inequality country by the World Bank 2025 report, indicating visible progress in poverty reduction and inclusive growth.

About :

  • World Bank Report: Part of Spring 2025 Poverty and Equity Brief.
  • Gini Index Score: India’s score stands at 25.5 (moderately low inequality).
  • Global Ranking: Ranked 4th most equal country by this index.
  • Global Comparison: Better score than China, USA, and Brazil.
     

Findings of the Report :

  • Poverty Reduction: Drop in extreme poverty seen in rural and urban areas.
  • India’s Gini Index improved from 28.8 (2011) to 25.5 (2023), showing more equitable income distribution.
  • Government Schemes: Programs like PM Garib Kalyan Anna Yojana supported poor families.
  • Financial Inclusion: Jan Dhan Yojana increased access to banking services
  • Over 55 crore bank accounts opened.(PMJDY)
  • Social Safety Nets: Free food grain schemes improved nutritional security.
  • Health Initiatives: Ayushman Bharat expanded healthcare access for the poor.
  • Employment Support: Schemes like MGNREGA provided rural job opportunities. (41 crore+ cards issued for ₹5 lakh health cover.)

 

Challenges :

  • Data Limitations: Consumption-based Gini may miss income-based disparities.
  • Urban-Rural Divide: Still wide gaps in infrastructure and opportunities.
  • Gender Gaps: Female workforce participation remains low in several sectors.
  • Informal Economy: Over 90% workers still in informal employment.

 

Way Forward :

  • Improve Data Quality: Adopt mixed-method surveys like NSS and PLFS.
  • Tackle Income Gaps: Implement living wage laws and tax reforms.
  • Focus on Inclusion: Expand skills training for rural women and youth.
  • Boost Formal Jobs: Encourage labour-intensive industries and digital services.
     

Conclusion :
 India's improved Gini score reflects gains in poverty alleviation, yet hidden inequalities persist. Balanced policies, quality data, and inclusive employment growth remain essential for true equity.

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