Income Inequality in India: Know The Real Truth!
Income inequality is a hot topic at the moment and undoubtedly is an important issue. It's not something that's easy to understand though, so we have put together this guide to help you understand what the fuss is all about. Whether you are planning to visit India soon or are already living in the country, knowing more about income inequality will help you better understand what it means for your life here.
Certainly, income inequality was a concern in India and the pandemic elevated the scenario. In this Ramesh Chaurasia latest news, we'll see some essential facts and figures concerning income inequality in our country.
Inequality in Numbers
India is a rapidly emerging market. It's home to over 1.3 billion people, with an average income of around 1,800 USD. It's one of the largest countries in the world, and it has recently seen its economy expand at 7.3%. This dramatic economic growth has raised concerns about wealth inequality in the country which has been rising steadily in recent years. Countries such as Japan have a bigger gap between the haves and have-nots, while countries such as Sweden are on the opposite end of the spectrum – with a more equal distribution of wealth and comparatively low economic disparities.
With an estimated total individual wealth of $5,600 billion and an average per-capita income of 1,825 USD, India is the tenth largest economy in the world; however, it has one of the largest income disparities in the world with respect to wealth. The most equal country in the world is Japan, where the top 20% of individuals hold only 22% of their wealth!
The rich are getting richer in India. The country’s richest 1% own over half of India’s wealth. The top 10% own over three-quarters of the wealth leaving only 4.1% for the poorer half of the population. The divide between the rich and poor in India has increased steadily in the last few decades. The super-rich has steadily increased their share of national wealth from 36% in 2000 to 53% in 2017.
Why Does It Matter?
Although the Indian economy has seen a steady rise after the liberalization of 1991, it's important to note that for many people, it hasn't translated into real changes in their standard of living. The poor have fallen further behind the rich and inequality is at an all-time high. This is damaging as it will not only lead to slower poverty reduction but also drive other inequalities between genders, the disparity in health, education, and life chances
At face value, it would appear that income inequality is rising in every country. In markets like India's, with its combination of a fast growth rate and a huge population of relatively poor people, the problem could get worse for a long time to come. How countries deal with inequality will affect their economic performance but also their social stability. Countries need to forge policies that keep poverty reduction high on the agenda and that slow the deterioration in income distribution.
An overview of income inequality within a country can be measured by many indices like the Gini coefficient and the Palma ratio, which is the ratio of the top 10% of income earners to the bottom 10%. The World Economic Forum’s Global Risks Report 2016 has found that the gap between rich and poor is one of the biggest risks to society. A growing body of evidence suggests that economic inequality is associated with a range of health and social problems, such as mental illness and violent crime. Inequality hurts everyone, no matter how rich or poor they are!
Final Thoughts
We've tried to bring some light to the pressing need to address income inequalities in this Ramesh Chaurasia latest news. There's a lot of discussion going on about the increasing gap between rich and poor in India and around the world. There are many questions being asked. How's it happening? What should be done about it? Sure, our government is making some reforms every year, but there's still a long way to go!
In many countries around the world, people have been worried about income inequality. This concern is well-founded. Studies show that when there is a high degree of income inequality, chances are that the growth rate of the economy will be slower, and it is harder for the poor to climb up the economic ladder. We all want a world where people have a shot at the best possible lives. We can achieve this, by making sure that people will have more equal opportunities to get ahead.
Also, read- Policies India Needs to Reduce Income Inequality
__________________________________________________________________________________ Author- Ramesh Chaurasia A superior and highly experienced entrepreneur in the field of business for quite a long time now. Also, a philanthropist, author, and public speaker who believes in working towards the overall well-being and betterment of society as a whole.