Causes Of Income Inequality In India Upsc

Based on the new india human development survey ihds which provides data on income inequality for the first time india scores a level of income equality lower than russia the united states china and brazil and more egalitarian than only south africa.

Causes of income inequality in india upsc. As per oxfam s study the total wealth of 63 indian billionaires is higher than the union budget of 2018 19 which was rs. The first and the foremost cause is the present economic order. The percentage of the income held by the poorest 10 in. This article will describe in detail india s rising income inequality and unemployment figures.

The main reason for low level of income of the majority. The middle income trap is a theoretical economic development situation in which a country that attains a certain income due to given advantages gets stuck at that level. In the recent years india has joined the club of most unequal countries. In india inequality in the distribution of in come has increased for various reasons.

The main reasons are the following. Middle income trap and its causes in india upsc ias. Analysis of income inequality in india. Taking into consideration the colossal differences in income among the people in an economy the question arises about the causes of this inequalities.

The graph below represents the percentage of the income held by the poorest 10 of the population in the selected countries. But the reality is that the bottom 60 the majority of the population owns less than 5 of the country s wealth. The causes can be discussed under the following heads. The world bank defines as the middle income range countries with gross national product per capita that has remained between 1 000 to 12 000 at constant.

Let us make an in depth study of the major causes and measures of inequality of income and wealth in india. India s upper caste households earned nearly 47 more than the national average annual household income the top 10 within these castes owned 60 of the wealth within the group in 2012 as per the world inequality database. Percentage of income held by the poorest 10 of the population. The percentage of the income held by the top 10 in india is close to 30 percent.

This is the geographical facet of income inequalities for the country as a whole. These upsc notes on income inequality in india and related problems are aligned with the upsc syllabus and aspirants should prepare this topic for general studies paper i. This growing inequality threatens to destroy the fabric of indian democracy. The figures of income disparity and unemployment are increasing in the country.

In today s economic system of india women and girls benefit the least. Meanwhile indian millionaires are adding wealth at the fastest in the region which india can take pride in it.