Topic: GS2 – Social Justice, GS3 – Indian Economy – Inclusive growth

This topic is crucial for UPSC as it pertains to socioeconomic issues, governance, and policy-making in India’s development agenda.

Some important data:

● Top 10% of India’s populace owns 77% of national wealth; wealthiest 1% controls 53%.

●  Income inequality: Top 10% and top 1% command 57% and 22% of national income, while bottom 50% share 13%.

●  Tax burden: Bottom 50% contributes 64% of GST revenue, contrasting with 4% from top 10%.

●  Healthcare accessibility: Healthcare costs plunge 63 million Indians into poverty yearly.

●  Food security: 74% can’t afford healthy diets, 39% lack nutrient-adequate food.

●  Hunger and malnutrition: India’s Global Hunger Index (GHI) score is 28.7, child-wasting rate highest at 18.7.

● Gender inequality: India ranks 127 out of 146 nations in Global Gender Gap Report 2023; workforce “missing women” persist as a challenge.

(Source – The Hindu Newspaper – January 16, 2024)

Reasons for Growing Inequality:

● Economic Policies: Economic reforms and liberalisation policies have led to unequal distribution of wealth, with benefits accruing to the affluent while marginalised groups remain excluded.

●  Urban-Rural Divide: Disparities between urban and rural areas in terms of access to resources, infrastructure, and opportunities exacerbate income inequality.

● Education Disparities: Unequal access to quality education perpetuates socio-economic disparities, limiting opportunities for upward mobility.

●  Informal Sector: The dominance of the informal sector in India’s economy leads to low wages, precarious employment, and lack of social security, contributing to income inequality.

●  Caste and Social Discrimination: Persistent caste-based discrimination and social hierarchies perpetuate inequalities, particularly affecting marginalised communities.

●  Gender Disparities: Gender-based discrimination in education, employment, and wages results in lower incomes and limited economic opportunities for women, exacerbating inequality.

●   Wealth Concentration: Concentration of wealth among a small elite contributes to widening income gaps and exacerbates socio-economic inequality.

Implications of Growing Inequality:

●  Social Unrest: Rising inequality can fuel social tensions, conflicts, and unrest, leading to instability and discord within society.

●   Health Disparities: Inequality in access to healthcare leads to disparities in health outcomes, with marginalised communities suffering from higher rates of morbidity and mortality.

●   Education Divide: Inequality in education perpetuates intergenerational poverty and limits social mobility, widening the gap between the rich and the poor.

●  Political Instability: Growing inequality undermines democratic principles and can lead to political instability, populism, and erosion of social cohesion.

●  Economic Growth: High levels of inequality can hinder economic growth and development by limiting human capital formation, productivity, and innovation.

Way Forward:

●  Progressive Taxation: Implement progressive tax policies to redistribute wealth and income, ensuring a more equitable distribution of resources.

● Investment in Education: Increase investment in education, particularly for marginalised communities, to improve access to quality education and enhance skills development.

● Social Protection: Strengthen social safety nets, welfare programs, and labour rights to provide support and protection for vulnerable populations.

●  Gender Equality: Promote gender equality through policies and programs that empower women, eliminate discrimination, and ensure equal opportunities in education and employment.

●  Inclusive Economic Growth: Foster inclusive economic growth by prioritising sectors that create employment opportunities, promote entrepreneurship, and reduce poverty.

●   Land Reforms: Implement land reforms to address land ownership disparities and ensure access to land for landless farmers and marginalised communities.