Income Inequality
in India has reached historic levels.
In 2022-23, the
top 1%
held
22.6%
of national income and
40.1%
of
national wealth.
Economic Liberalization and Policy Shift
1
1
Economic reforms of the
1990s
spurred growth but benefited
urban areas
and
high-skilled sectors,
leaving rural regions behind.
Educational Inequality
2
2
Barriers to
quality education
for marginalized communities limit
opportunities
and perpetuate generational
income gaps.
Labor Market Dynamics
3
3
A vast
informal sector
offers low wages and poor conditions, contributing to rising
income inequality.
Taxation Policies
4
4
India’s regressive tax system, including
GST
, disproportionately impacts lower-income groups,
worsening disparities.
Social Inequalities
5
5
Caste
discrimination
and gender gaps hinder equal access to
resources
and
economic opportunities.
Impact of Globalization
6
6
Globalization’s
benefits
are
uneven
, favoring certain industries while traditional sectors face decline, widening
income gaps.
Technological Advancements
7
7
Automation
benefits high-skilled jobs but displaces
low-skilled workers,
leading to wage stagnation.
Policy Implementation Challenges
8
8
Corruption
and
inefficiencies
in welfare programs reduce their effectiveness in tackling
inequality
.
Urban-Rural Divide
9
9
Urban areas thrive with better
infrastructure
and
job opportunities,
while rural areas lag, leading to income gaps.
Regional Disparities
10
10
Wealthier states like
Maharashtra
and
Tamil Nadu
drive 50% of GDP, while less developed states face
infrastructure
and
income challenges.