PRELIMS BITS
A recent analysis from PRICE highlights income inequality trends in India, with a focus on post-Covid recovery and wealth concentration.
- Gini Index: The Gini index improved from 0.506 (2020-21) to 0.410 (2022-23), indicating a slight improvement in income distribution, but still higher than 0.367 (2015-16), reflecting persistent inequality.
- Income Distribution: The income shares of the bottom 50% increased from 15.84% (2020-21) to 22.82% (2022-23), though still below 24.07% in 2015-16. The middle 40% saw an increase to 46.6% from 43.9%.
- Top Income Earners: The top 10% saw their share decrease from 38.6% in 2020-21 to 30.6% in 2022-23, though it remains high. The top 1% saw their share drop from 9% to 7.3%.
- Role of Social Welfare: Schemes like MGNREGA and DBT have helped improve income for lower-income groups.
- Sustainable Growth: To reduce inequality, investments in education, healthcare, rural infrastructure, and progressive taxation are crucial.