Context:
According to WIL, the income inequality in present India is worse than that during colonial rule, which does not imply that the poor are worse off.
Key Highlights:
- Now India’s become the greatest unequal country in the world, whereby the top 10% share in 55-60% of the aggregate income and the bottom 50%-approximately receives about 15%.
- The income scale and inequality argument of the government only persuades the rich entrepreneurs were not convincing.
- The right amount of inequality for India would be 30-40% and not the present figure of 55-60%.
- The caste system, which is the strongest influence on inequality, is largely policy-driven.
- India has innovated to overcome inequality through reservations for scheduled castes, scheduled tribes, and women in elections, referring to the inequality issue.
What is Income Inequality
Income inequality is the uneven distribution of income across a population. It’s a concern in many countries around the world, and it’s often accompanied by wealth inequality, which is the uneven distribution of wealth.
Gini Coefficient
The Gini coefficient is a number between 0 and 1 or 100.
- 0 signifies perfect equality.
- 1 or 100 implies perfect inequality.
- India’s Point:
- 37.06 (2022)
Also Read: Editorial Analysis
