Download Learnerz IAS app from the Play Store now! Download



Wealth inequality UPSC NOTE

 World Inequality Lab Report

  • A new report by World Inequality Lab titled "Income and Wealth Inequality in India, 1922-2023" highlights a significant rise in both income and wealth inequality in India.

Income Inequality

  • The top 1% of earners in India now hold the highest share of national income (22.6%) in the last 100 years.

  • The top 0.1% of the population corner nearly 10% of the national income.

  • This share of the top 1% is among the highest in the world.

Wealth Inequality

  • The share of the top 1% in wealth is also at its peak since 1961 (40.1%).

  • The share of wealth among the top 10% has significantly increased from 45% in 1961 to 65% in 2022-23.

  • Conversely, the bottom 50% and middle 40% of the population hold a declining share of wealth.

Comparison with Other Countries

  • While India's wealth inequality isn't as extreme as Brazil and South Africa, it has grown rapidly since the 1980s.

  • India's income inequality is worse than these countries and even the US.

Impact on Growth and Development

  • The report argues that this rising inequality hinders economic growth and poverty reduction.

  • It compares India with China and Vietnam, where growth was more inclusive due to lower inequality.

Historical Trends

  • Inequality in India declined between 1960 and 1980 but worsened with economic reforms in the 1990s.

Human Development and State-wise Disparity

  • The report finds a correlation between high human development and sustained economic growth in states like Kerala and Tamil Nadu.

  • States with lower human development rankings (like Bihar) have experienced slower economic growth.

  • India's overall Human Development Index ranking is lower than its economic ranking, indicating economic growth hasn't translated into better human development.

Policy Recommendations

  • The report emphasizes prioritizing human development (education, healthcare) for inclusive and sustainable economic growth.

  • It criticizes free foodgrain schemes, arguing that handouts alone can't address deep inequality.

  • The report warns of potential social unrest if inequality remains unaddressed.



Amritsar,1,April 2024,301,Art & Culture,1,August 2023,251,Courses,7,Daily Current Affairs,48,December 2023,189,Disaster Management,2,Environment and Ecology,54,February 2024,228,Foundation Course,1,GDP,1,GEMS Club,1,GEMS Plus,1,Geography,67,Govt Schemes,2,GST,1,History,2,Home,3,IAS Booklist,1,Important News,71,Indian Economy,46,Indian History,2,Indian Polity,56,International Organisation,12,International Relations,58,Invasive Plant,1,January 2024,240,July 2023,281,June 2022,6,June 2023,268,March 2024,238,May 2022,17,May 2024,204,Mentorship,2,November 2023,169,October 2023,203,Places in News,2,Science & Technology,66,September 2023,205,UPSC CSE,111,
Learnerz IAS | Concept oriented UPSC Classes in Malayalam: Wealth inequality UPSC NOTE
Wealth inequality UPSC NOTE
Learnerz IAS | Concept oriented UPSC Classes in Malayalam
Loaded All Posts Not found any posts VIEW ALL Readmore Reply Cancel reply Delete By Home PAGES POSTS View All RECOMMENDED FOR YOU LABEL ARCHIVE SEARCH ALL POSTS Not found any post match with your request Back Home Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sun Mon Tue Wed Thu Fri Sat January February March April May June July August September October November December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec just now 1 minute ago $$1$$ minutes ago 1 hour ago $$1$$ hours ago Yesterday $$1$$ days ago $$1$$ weeks ago more than 5 weeks ago Followers Follow THIS PREMIUM CONTENT IS LOCKED STEP 1: Share to a social network STEP 2: Click the link on your social network Copy All Code Select All Code All codes were copied to your clipboard Can not copy the codes / texts, please press [CTRL]+[C] (or CMD+C with Mac) to copy Table of Content