Context: The Gini Index ranked India among the world’s most equal societies by giving the score of 25.5. The claim is widely criticised for ignoring the country’s stark and multidimensional inequalities.
Relevance of the Topic: Prelims: Concept of inequality and Gini Index. Mains: Forms of inequality in India.
Gini Index
- The Gini Index (or Gini Coefficient) measures income inequality within a population on a scale from 0 (perfect equality) to 100 (perfect inequality).
- India's score of 25.5 suggests relatively equitable income distribution. However, this assessment is based on limited income tax data, which covers only about 10% of the adult population, due to the predominance of informal work and non-taxable incomes.
Forms of Inequality in India
Wealth Inequality:
- According to a study titled ‘Income and Wealth Inequality in India 1922-2023: The Rise of the Billionaire Raj’, in FY 2022-23, 22.6% of the national income went to just the top 1% of the population.
- Large scale informal employment - low income and lower bargaining power.
- Large portion of the population remains outside the income tax net, making accurate representation difficult. This itself is a reflection of structural inequality in the economy.
Gender Inequality:
- Women constitute only 35.9% of the workforce. Gender roles and familial expectations continue to limit female participation in economic, educational, and digital spheres.
- In leadership positions, their representation drops further- just 12.7% in senior or middle management.
- Despite India having the third-largest startup ecosystem, only 7.5% of active startups are led by women.
- Digital gender divide: Only 25% of rural women have internet access compared to 49% of rural men.
Digital Inequality:
Though internet penetration has improved, a severe digital divide remains.
- Only 41.8% of households across rural and urban India have broadband.
- Digital inequality reinforces educational and economic disparities, and restricts access to employment opportunities. This technological gap ensures that only certain socio-economic classes stay competitive in the job market, pushing others into low-skill roles.
Educational Inequality:
Educational inequality is deepened by unequal digital access.
- Only 52.7% of schools have functional computers, and 53.9% have internet access.
- Students from low-income or rural backgrounds lack access to digital skills, which are crucial for higher education and employment. E.g., In cities like Delhi, where schools close during winter pollution, only children with internet access can continue learning.
Bridging these divides requires inclusive policies, better data collection, and focus on structural reforms that ensure opportunity reaches every corner of India. Only then can we truly call ourselves an equal society.