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.