Income Inequality Definition In India

Analysis of income inequality in india.

Income inequality definition in india. Income inequality is a major dimension of social stratification and social class. The less equal the distribution the higher income inequality is. Low la bour productivity implies low rate of economic growth which is the main cause of poverty and inequality of the large masses of people. Rather with this growth of national income over the last two decades inequality in the distribution of personal income has been accentuated.

Income inequality is the unequal distribution of household or individual income across the various participants in an economy. Income inequality in india refers to the unequal distribution of wealth and income among its citizens. In the recent years india has joined the club of most unequal countries. It affects and is affected by many other forms of inequality such as inequalities of wealth political power.

Income inequality is often accompanied by wealth. The main reason for low level of income of the majority of indian people is unemployment and underemployment and the consequent low productivity of labour. Thus in recent years the problem of inequality in the distribution of income and wealth has gained much importance in india. The economists plan to release the first world inequality report produced by a network of more than 100 researchers in december where they will compare india s inequality with other countries.

The united states currently holds 41 6 percent of the world s personal wealth making it the richest nation in the world but has a gini coefficient 42 that is the worst of any oecd. Income inequality is often presented as the percentage of income to a percentage of the population. Income inequality in economics significant disparity in the distribution of income between individuals groups populations social classes or countries. In fact inequality poverty and unemployment are.

The united states wealth inequality which takes into consideration income property and investments is even more pronounced than its income inequality. According to the cia world factbook the gini index of india which is a measure of income distribution inequality was 35 2 in 2011 ranking 95 th out of 157.