Home   »   UPSC Syllabus 2024   »   Inequality in India

Inequality in India

About Inequality

  • It is an unfair situation in society when some people have more opportunities than other people.
  • The United Nations describes it even more simply as “the state of not being equal, especially in status, rights and opportunities”.
  • Gini coefficient is a typical measure of income inequality.

Highlights of Inequality in India Report

  • Data highlighting Inequality in India
    • Wealth inequality: The richest 1% in India now own more than 40% of the country’s total wealth, while the bottom half of the population together share just 3% of wealth.
    • Gender inequality: The report said that female workers earned only 63 paise for every 1 rupee a male worker earned.
    • Social inequality: The Scheduled Castes earned 55% of what the advantaged social groups earned, while rural workers earned only half of the urban earnings between 2018 and 2019.
    • GST share: Approximately 64% of Goods and Services Tax (GST) came from the bottom 50% of the population in 2021-22, with only 3% of GST coming from the top 10%.
    • Wealth of the richest: Combined wealth of India’s 100 richest could fund the entire Union Budget for more than 18 months.
  • Impacts of Inequality
    • Further marginalisation: The country’s marginalised – Dalits, Adivasis, Muslims, Women and informal sector workers – continue to suffer in a system which ensures the survival of the richest.
    • Disproportionate spending: The poor are paying disproportionately higher taxes, spending more on essential items and services when compared to the rich.

Way Forward

  • Taxing super-rich: Tax the wealth of the super-rich at rates high enough to systematically reduce extreme wealth and lower power concentration and inequality.
  • Funding to bridge inequality: Use the revenues from taxing super-rich to increase government spending on inequality-busting sectors, such as healthcare, education and food security, and to fund the just transition to a low-carbon world.
  • Progressive taxation: Implement progressive tax measures such as wealth tax and inheritance tax, to reduce inequality.
  • Basic wages: There is a need to ensure workers in the formal and informal sector get basic minimum wages, which is essential for living a dignified life.

Sharing is caring!


What is Inequality?

It is an unfair situation in society when some people have more opportunities than other people.

Leave a comment

Your email address will not be published. Required fields are marked *