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Answer» Unequal distribution of income and property: - After the economic reforms of 1991, economic growth and per capita income have increased sharply in India. But, due to unequal distribution of income, poverty could not be reduced at a large scale.
- In India, on one hand we see rich class of people with high standard of living . and enjoying good facilities and on the other hand we find low income people living in slums and deprived of basic necessities like food, education and health.
The table below shows the actual income of the top 1% rich class in USA, UK and India: Share of actual national income to top 1% rich class | Country | Year 1998 | Year 2012 | | USA | 15.2 | 18.9 | | UK | 12.5 | 12.7 | | India | 9.0 | 12.6 |
Source: Economic survey, 2015-16 Analysis; - From the table we can see that the real income of top 1% has increased in year 2012 as compared to the year 1998.
- India’s rich class held 12.6% national income in 2012 as compared to 9% in 1998. This figure is quite high.
- For India it can be said that the advantage from economic reforms were more in favour of rich class.
- Thus income inequality on a large scale serves as an indicator of poverty.
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