It is an unfair situation in society when some people have more opportunities than other people.

Inequality in India

Table of Contents

About Inequality

It is an unfair situation in society when some people have more opportunities than other people.
The United Nations describes it even more simply as “the state of not being equal, especially in status, rights and opportunities”.
Gini coefficient is a typical measure of income inequality.

Data highlighting Inequality in India
- Wealth inequality: The richest 1% in India now own more than 40% of the country’s total wealth, while the bottom half of the population together share just 3% of wealth.
- Gender inequality: The report said that female workers earned only 63 paise for every 1 rupee a male worker earned.
- Social inequality: The Scheduled Castes earned 55% of what the advantaged social groups earned, while rural workers earned only half of the urban earnings between 2018 and 2019.
- GST share: Approximately 64% of Goods and Services Tax (GST) came from the bottom 50% of the population in 2021-22, with only 3% of GST coming from the top 10%.
- Wealth of the richest: Combined wealth of India’s 100 richest could fund the entire Union Budget for more than 18 months.
Impacts of Inequality
- Further marginalisation: The country’s marginalised – Dalits, Adivasis, Muslims, Women and informal sector workers – continue to suffer in a system which ensures the survival of the richest.
- Disproportionate spending: The poor are paying disproportionately higher taxes, spending more on essential items and services when compared to the rich.

Taxing super-rich: Tax the wealth of the super-rich at rates high enough to systematically reduce extreme wealth and lower power concentration and inequality.
Funding to bridge inequality: Use the revenues from taxing super-rich to increase government spending on inequality-busting sectors, such as healthcare, education and food security, and to fund the just transition to a low-carbon world.
Progressive taxation: Implement progressive tax measures such as wealth tax and inheritance tax, to reduce inequality.
Basic wages: There is a need to ensure workers in the formal and informal sector get basic minimum wages, which is essential for living a dignified life.