{"id":36494,"date":"2024-04-01T12:06:00","date_gmt":"2024-04-01T12:06:00","guid":{"rendered":"https:\/\/edukemy.com\/blog\/?p=36494"},"modified":"2024-04-01T12:06:02","modified_gmt":"2024-04-01T12:06:02","slug":"economic-inequality-in-india-upsc-economy-notes","status":"publish","type":"post","link":"https:\/\/edukemy.com\/blog\/economic-inequality-in-india-upsc-economy-notes\/","title":{"rendered":"Economic Inequality in India &#8211; UPSC Economy Notes"},"content":{"rendered":"\n<figure class=\"wp-block-image size-full\"><a href=\"https:\/\/edukemy.com\/upsc\/upsc-economy?utm_source=Blog&amp;utm_medium=Banner&amp;utm_campaign=Blog+Economy\" target=\"_blank\" rel=\"noreferrer noopener\"><img fetchpriority=\"high\" decoding=\"async\" width=\"1280\" height=\"300\" src=\"https:\/\/edukemy.com\/blog\/wp-content\/uploads\/2024\/06\/17.png\" alt=\"\" class=\"wp-image-42386\" srcset=\"https:\/\/edukemy.com\/blog\/wp-content\/uploads\/2024\/06\/17.png 1280w, https:\/\/edukemy.com\/blog\/wp-content\/uploads\/2024\/06\/17-1170x274.png 1170w, https:\/\/edukemy.com\/blog\/wp-content\/uploads\/2024\/06\/17-585x137.png 585w\" sizes=\"(max-width: 1280px) 100vw, 1280px\" \/><\/a><\/figure>\n\n\n\n<p>Economic inequality stands as a towering challenge within the complex socio-economic landscape of India, a nation characterized by its diversity in culture, geography, and economic development. With a population exceeding 1.3 billion people, India harbors a paradoxical economic narrative where rapid growth coexists with staggering inequality. While the country has witnessed remarkable progress in various sectors, including technology and finance, a substantial portion of its populace remains mired in poverty and deprivation. The chasm between the affluent and the marginalized persists, manifesting in stark contrasts in income, wealth distribution, and access to basic amenities. This pervasive economic inequality not only threatens social cohesion but also undermines the country&#8217;s potential for sustained and inclusive development. Understanding the multifaceted dimensions of economic inequality in India is crucial for formulating effective policy interventions aimed at fostering equitable growth and opportunity for all segments of society.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_73 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<label for=\"ez-toc-cssicon-toggle-item-69df7da8ca13b\" class=\"ez-toc-cssicon-toggle-label\"><p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-cssicon\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69df7da8ca13b\"  \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/edukemy.com\/blog\/economic-inequality-in-india-upsc-economy-notes\/#Economic_Growth_Trajectory_of_India\" title=\"Economic Growth Trajectory of India\">Economic Growth Trajectory of India<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/edukemy.com\/blog\/economic-inequality-in-india-upsc-economy-notes\/#FY_202324\" title=\"FY 2023\/24:\">FY 2023\/24:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/edukemy.com\/blog\/economic-inequality-in-india-upsc-economy-notes\/#Future_Prospects\" title=\"Future Prospects:\">Future Prospects:<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/edukemy.com\/blog\/economic-inequality-in-india-upsc-economy-notes\/#What_are_the_Inequality_Trends_in_India\" title=\"What are the Inequality Trends in India?\">What are the Inequality Trends in India?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/edukemy.com\/blog\/economic-inequality-in-india-upsc-economy-notes\/#Wealth_Inequality\" title=\"Wealth Inequality:\">Wealth Inequality:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/edukemy.com\/blog\/economic-inequality-in-india-upsc-economy-notes\/#Income_Inequality\" title=\"Income Inequality:\">Income Inequality:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/edukemy.com\/blog\/economic-inequality-in-india-upsc-economy-notes\/#Tax_Burden_on_the_Poor\" title=\"Tax Burden on the Poor:\">Tax Burden on the Poor:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/edukemy.com\/blog\/economic-inequality-in-india-upsc-economy-notes\/#Healthcare_Accessibility\" title=\"Healthcare Accessibility:\">Healthcare Accessibility:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/edukemy.com\/blog\/economic-inequality-in-india-upsc-economy-notes\/#Food_Security_and_Nutrition\" title=\"Food Security and Nutrition:\">Food Security and Nutrition:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/edukemy.com\/blog\/economic-inequality-in-india-upsc-economy-notes\/#Gender_Inequality\" title=\"Gender Inequality:\">Gender Inequality:<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/edukemy.com\/blog\/economic-inequality-in-india-upsc-economy-notes\/#Causes_of_Increasing_Inequality_Despite_High_Economic_Growth_in_India\" title=\"Causes of Increasing Inequality Despite High Economic Growth in India\">Causes of Increasing Inequality Despite High Economic Growth in India<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/edukemy.com\/blog\/economic-inequality-in-india-upsc-economy-notes\/#Wealth_Accumulation\" title=\"Wealth Accumulation:\">Wealth Accumulation:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/edukemy.com\/blog\/economic-inequality-in-india-upsc-economy-notes\/#Lack_of_Inclusive_Growth_Policies\" title=\"Lack of Inclusive Growth Policies:\">Lack of Inclusive Growth Policies:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/edukemy.com\/blog\/economic-inequality-in-india-upsc-economy-notes\/#Inadequate_Labour_Policies\" title=\"Inadequate Labour Policies:\">Inadequate Labour Policies:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/edukemy.com\/blog\/economic-inequality-in-india-upsc-economy-notes\/#Social_Exclusion\" title=\"Social Exclusion:\">Social Exclusion:<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/edukemy.com\/blog\/economic-inequality-in-india-upsc-economy-notes\/#Steps_should_be_taken_to_Achieve_Inclusive_Growth_in_India\" title=\"Steps should be taken to Achieve Inclusive Growth in India\">Steps should be taken to Achieve Inclusive Growth in India<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/edukemy.com\/blog\/economic-inequality-in-india-upsc-economy-notes\/#Foster_Inclusive_Framework\" title=\"Foster Inclusive Framework:\">Foster Inclusive Framework:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/edukemy.com\/blog\/economic-inequality-in-india-upsc-economy-notes\/#Inclusive_Governance\" title=\"Inclusive Governance:\">Inclusive Governance:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/edukemy.com\/blog\/economic-inequality-in-india-upsc-economy-notes\/#Private_Sector_Engagement\" title=\"Private Sector Engagement:\">Private Sector Engagement:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/edukemy.com\/blog\/economic-inequality-in-india-upsc-economy-notes\/#Increase_Reach_of_Basic_Necessities\" title=\"Increase Reach of Basic Necessities:\">Increase Reach of Basic Necessities:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/edukemy.com\/blog\/economic-inequality-in-india-upsc-economy-notes\/#Social_and_Financial_Inclusion\" title=\"Social and Financial Inclusion:\">Social and Financial Inclusion:<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/edukemy.com\/blog\/economic-inequality-in-india-upsc-economy-notes\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/edukemy.com\/blog\/economic-inequality-in-india-upsc-economy-notes\/#FAQs\" title=\"FAQs\">FAQs<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-24\" href=\"https:\/\/edukemy.com\/blog\/economic-inequality-in-india-upsc-economy-notes\/#1_What_causes_economic_inequality_in_India\" title=\"1. What causes economic inequality in India?\">1. What causes economic inequality in India?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-25\" href=\"https:\/\/edukemy.com\/blog\/economic-inequality-in-india-upsc-economy-notes\/#2_How_does_economic_inequality_impact_society_in_India\" title=\"2. How does economic inequality impact society in India?\">2. How does economic inequality impact society in India?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-26\" href=\"https:\/\/edukemy.com\/blog\/economic-inequality-in-india-upsc-economy-notes\/#3_What_measures_are_being_taken_to_address_economic_inequality_in_India\" title=\"3. What measures are being taken to address economic inequality in India?\">3. What measures are being taken to address economic inequality in India?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-27\" href=\"https:\/\/edukemy.com\/blog\/economic-inequality-in-india-upsc-economy-notes\/#4_What_role_does_taxation_play_in_addressing_economic_inequality_in_India\" title=\"4. What role does taxation play in addressing economic inequality in India?\">4. What role does taxation play in addressing economic inequality in India?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-28\" href=\"https:\/\/edukemy.com\/blog\/economic-inequality-in-india-upsc-economy-notes\/#5_How_can_civil_society_contribute_to_reducing_economic_inequality_in_India\" title=\"5. How can civil society contribute to reducing economic inequality in India?\">5. How can civil society contribute to reducing economic inequality in India?<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-29\" href=\"https:\/\/edukemy.com\/blog\/economic-inequality-in-india-upsc-economy-notes\/#In_case_you_still_have_your_doubts_contact_us_on_9811333901\" title=\"In case you still have your doubts, contact us on 9811333901.&nbsp;\">In case you still have your doubts, contact us on 9811333901.&nbsp;<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-30\" href=\"https:\/\/edukemy.com\/blog\/economic-inequality-in-india-upsc-economy-notes\/#Visit_our_YouTube_Channel_%E2%80%93_here\" title=\"Visit our YouTube Channel &#8211;&nbsp;here\">Visit our YouTube Channel &#8211;&nbsp;here<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Economic_Growth_Trajectory_of_India\"><\/span><strong>Economic Growth Trajectory of India<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>FY 2022\/23: India&#8217;s real GDP expanded by an estimated 6.9%, driven by:<\/p>\n\n\n\n<p>Robust domestic demand<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Increased investment in infrastructure encouraged by the government<\/li><li>Strong private consumption, especially among higher-income earners<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"FY_202324\"><\/span>FY 2023\/24:<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li>Real GDP growth estimated at 7.3%, up from 7.2% in 2022-23<\/li><li>India ranked 5th in the world&#8217;s GDP rankings for 2024<\/li><li>Economy reported at $3.7 trillion, up from $1.9 trillion a decade ago<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Future_Prospects\"><\/span>Future Prospects:<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li>Indian economy projected to reach $7.3 trillion by 2030 and $10 trillion by 2035<\/li><li>Indian government aims to transform India into a &#8216;developed country&#8217; by 2047<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_Inequality_Trends_in_India\"><\/span><strong>What are the Inequality Trends in India?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Wealth_Inequality\"><\/span>Wealth Inequality:<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li>India exhibits staggering wealth inequality, with the top 10% of the population holding 77% of the total national wealth.<\/li><li>The richest 1% owns 53% of the country&#8217;s wealth, leaving the poorer half with a mere 4.1%.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Income_Inequality\"><\/span>Income Inequality:<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li>According to the World Inequality Report 2022, India ranks among the most unequal countries globally, with the top 10% and top 1% holding 57% and 22% of the national income, respectively.<\/li><li>Meanwhile, the share of the bottom 50% has decreased to 13%.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Tax_Burden_on_the_Poor\"><\/span>Tax Burden on the Poor:<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li>A disproportionate burden falls on the lower-income brackets, with approximately 64% of the total goods and services tax (GST) collected from the bottom 50%, compared to only 4% from the top 10%.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Healthcare_Accessibility\"><\/span>Healthcare Accessibility:<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li>Many ordinary Indians struggle to access necessary healthcare, with 63 million pushed into poverty annually due to healthcare costs.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Food_Security_and_Nutrition\"><\/span>Food Security and Nutrition:<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li>Around 74% of India&#8217;s population cannot afford a healthy diet, and 39% lack nutrient-adequate nutrition.<\/li><li>India&#8217;s 2023 Global Hunger Index (GHI) score is 28.7, signaling a serious issue as per the GHI Severity of Hunger Scale.<\/li><li>Notably, India&#8217;s child-wasting rate, at 18.7, is the highest recorded in the report.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Gender_Inequality\"><\/span>Gender Inequality:<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li>India ranks 127th out of 146 countries in the Global Gender Gap Report 2023.<\/li><li>The country faces the persistent challenge of &#8220;missing women&#8221; from the workforce, constituting a complex and ongoing issue.<\/li><\/ul>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter\"><img decoding=\"async\" data-src=\"https:\/\/lh7-us.googleusercontent.com\/GSCD10q-ty70PWC0DIQZ-ZABhrq90CCP1qUr-36ulml7hVONFtLwPCKPW3UhkZ0fe-7kWJ02MHVwn7BYJR1Yz18Pfg95Kjo77mNCoGXzzgjjnBJENem3RJtzntCsMYcbXesEwBeQyOxAOqeCIz1lZpE\" alt=\"Share of Wealth\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" class=\"lazyload\" \/><figcaption>Share of Wealth<\/figcaption><\/figure><\/div>\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Causes_of_Increasing_Inequality_Despite_High_Economic_Growth_in_India\"><\/span><strong>Causes of Increasing Inequality Despite High Economic Growth in India<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Wealth_Accumulation\"><\/span>Wealth Accumulation:<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li>Concentration of Wealth: When wealth is concentrated in the hands of a few, it perpetuates inequality across generations as advantages are passed down to descendants.<\/li><li>Inadequate Land Reforms: Insufficient land reforms leave a significant portion of the population landless or with insufficient land, increasing vulnerability to poverty and economic instability.<\/li><li>Crony Capitalism: Corrupt practices and favoritism result in wealth accumulation among a select group, furthering inequality.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Lack_of_Inclusive_Growth_Policies\"><\/span>Lack of Inclusive Growth Policies:<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li>Skewed Distribution of Economic Gains: Economic growth may unevenly benefit specific sectors or income groups, exacerbating wealth disparities.<\/li><li>Regressive Taxation Policies: Tax systems favoring the wealthy or lacking progressivity contribute to income inequality.<\/li><li>Lack of Social Safety Nets: Insufficient social safety nets and welfare programs leave vulnerable populations without adequate support, widening the wealth gap.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Inadequate_Labour_Policies\"><\/span>Inadequate Labour Policies:<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li>Financialization of the Economy: Prioritizing financial markets over productive investments concentrates wealth in the financial sector.<\/li><li>Wage Gaps: Disparities between skilled and unskilled workers, along with lower wages and fewer benefits in informal labor markets, exacerbate income inequality.<\/li><li>Absence of Minimum Wages: Weak labor market policies, including inadequate minimum wage regulations and limited collective bargaining rights, contribute to income disparities.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Social_Exclusion\"><\/span>Social Exclusion:<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li>Caste Discrimination: Social exclusion based on caste marginalizes certain groups, limiting their access to opportunities, resources, and benefits.<\/li><li>Gender Inequality: Discrimination based on gender results in unequal access to employment opportunities and wage disparities.<\/li><li>Lack of Access to Education: Unequal access to quality education restricts upward mobility opportunities, reinforcing existing disparities.<\/li><li>Technological Deprivation: Automation and technological advancements lead to job displacement and wage stagnation for certain groups, worsening income inequality.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Steps_should_be_taken_to_Achieve_Inclusive_Growth_in_India\"><\/span><strong>Steps should be taken to Achieve Inclusive Growth in India<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Foster_Inclusive_Framework\"><\/span>Foster Inclusive Framework:<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li>Uphold Constitutional Provisions: Ensure strict adherence to the constitutional guarantee of equality enshrined in fundamental rights through effective policy enforcement.<\/li><li>Progressive Taxation: Implementing progressive taxation can mitigate income inequality by requiring higher earners to contribute a larger share of their income towards taxes.<\/li><li>Utilize Wealth Tax: Introduce a 1% wealth tax on Indian billionaires to fund initiatives like the National Health Mission, with a 2% tax proposed to support nutrition programs for India&#8217;s malnourished population over three years.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Inclusive_Governance\"><\/span>Inclusive Governance:<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li>Encourage Citizen Participation: Promote inclusive governance by fostering citizen engagement, transparency, and combating corruption.<\/li><li>Empower Marginalized Communities: Empower local self-governments and involve marginalized communities in decision-making processes.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Private_Sector_Engagement\"><\/span>Private Sector Engagement:<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li>Corporate Social Responsibility: Encourage corporate social responsibility initiatives that prioritize inclusive development and support community projects.<\/li><li>Social Sector Investment: Advocate for private sector investment in social sectors and community development endeavors.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Increase_Reach_of_Basic_Necessities\"><\/span>Increase Reach of Basic Necessities:<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li>Universal Access to Public Services: Ensure universal access to high-quality public services such as healthcare, education, and social security benefits to diminish inequality.<\/li><li>Employment Generation: Focus on labor-intensive manufacturing sectors to absorb rural migrants, alongside benefiting the urban middle class.<\/li><li>Women Empowerment: Promote gender equality in education, employment, and entrepreneurship to enhance women&#8217;s economic and social empowerment.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Social_and_Financial_Inclusion\"><\/span>Social and Financial Inclusion:<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li>Land Reforms: Implement comprehensive land reforms to address land ownership and tenancy issues, promoting fair distribution of land resources.<\/li><li>Civil Society Promotion: Support civil society groups, including unions and associations, to amplify the voices of historically marginalized communities.<\/li><li>Technology and Innovation: Embrace technological advancements to create opportunities for all, ensuring equitable distribution of benefits across society.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span><strong>Conclusion<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>India has the potential to move towards a more equitable society by adopting inclusive policies that address the root causes of inequality. This transformative strategy is in line with the objectives of the United Nations&#8217; Sustainable Development Goal 10.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"FAQs\"><\/span>FAQs<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"1_What_causes_economic_inequality_in_India\"><\/span><strong>1. What causes economic inequality in India?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Economic inequality in India is primarily caused by a combination of factors including historical disparities, unequal access to education and healthcare, insufficient job opportunities, disparities in land ownership, and inadequate government policies. Historical factors such as the caste system and colonial exploitation have contributed to entrenched inequality. Additionally, rapid economic growth has not been inclusive, leading to a concentration of wealth in the hands of a few.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"2_How_does_economic_inequality_impact_society_in_India\"><\/span><strong>2. How does economic inequality impact society in India?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Economic inequality exacerbates social tensions and hinders overall development in India. It leads to unequal access to opportunities, perpetuates poverty cycles, and undermines social cohesion. Inadequate access to education and healthcare further entrenches inequality, limiting the potential for upward mobility. Moreover, economic inequality can lead to political instability and undermine democratic processes as the interests of the wealthy often dominate policy-making.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"3_What_measures_are_being_taken_to_address_economic_inequality_in_India\"><\/span><strong>3. What measures are being taken to address economic inequality in India?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The Indian government has implemented various policies aimed at reducing economic inequality. These include affirmative action programs such as reservations in education and employment for marginalized communities, schemes to promote financial inclusion such as the Jan Dhan Yojana, and initiatives to enhance access to healthcare and education such as the National Health Mission and Sarva Shiksha Abhiyan. Additionally, efforts to promote inclusive growth through infrastructure development and rural employment programs like the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) are ongoing.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"4_What_role_does_taxation_play_in_addressing_economic_inequality_in_India\"><\/span><strong>4. What role does taxation play in addressing economic inequality in India?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Taxation policies play a crucial role in addressing economic inequality in India. Progressive taxation, where higher income groups are taxed at a higher rate, can help redistribute wealth and reduce inequality. The Indian government has implemented measures such as the Goods and Services Tax (GST) and income tax reforms to increase revenue collection and fund social welfare programs. However, tax evasion and loopholes in the tax system remain challenges that need to be addressed to ensure a more equitable distribution of wealth.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"5_How_can_civil_society_contribute_to_reducing_economic_inequality_in_India\"><\/span><strong>5. How can civil society contribute to reducing economic inequality in India?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Civil society organizations play a significant role in advocating for policies and programs that address economic inequality. They can raise awareness about the impacts of inequality, mobilize communities to demand government action, and provide support services to marginalized groups. Additionally, civil society can engage in research and policy analysis to identify effective solutions and hold governments and corporations accountable for their actions. Grassroots movements and community-based initiatives can also empower individuals and communities to challenge systemic inequalities and promote social justice.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full is-resized\"><a href=\"https:\/\/edukemy.com\/upsc\/upsc-essay?utm_source=Blog&amp;utm_medium=Banner&amp;utm_campaign=Essay\" target=\"_blank\" rel=\"noreferrer noopener\"><img decoding=\"async\" data-src=\"https:\/\/edukemy.com\/blog\/wp-content\/uploads\/2024\/06\/UPSC-Essay-Course-1280\u00d7300-1-3.svg\" alt=\"\" class=\"wp-image-42688 lazyload\" width=\"781\" height=\"182\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" style=\"--smush-placeholder-width: 781px; --smush-placeholder-aspect-ratio: 781\/182;\" \/><\/a><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"block-c6ab63ae-7083-4831-b519-cb89dacafb18\"><span class=\"ez-toc-section\" id=\"In_case_you_still_have_your_doubts_contact_us_on_9811333901\"><\/span><strong>In case you still have your doubts, contact us on 9811333901.<\/strong>&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p id=\"block-52c5a91b-6ed6-46e3-b781-7cc0c63a0b76\">For UPSC Prelims Resources,&nbsp;<a href=\"https:\/\/edukemy.com\/upsc-cse-prelims-resource-centre\" target=\"_blank\" rel=\"noreferrer noopener\">Click here<\/a><\/p>\n\n\n\n<p id=\"block-d014fe86-d628-49d8-82ce-6c60dc6e7a73\">For Daily Updates and Study Material:<\/p>\n\n\n\n<p id=\"block-38177954-e668-4d8d-b250-d0fbd5a09390\">Join our Telegram Channel &#8211;&nbsp;<a href=\"https:\/\/t.me\/WithEdukemy4IAS\" target=\"_blank\" rel=\"noreferrer noopener\">Edukemy for IAS<\/a><\/p>\n\n\n\n<ul class=\"wp-block-list\" id=\"block-49ca2fe3-109f-4a88-b72e-9df49c3d328e\"><li>1. Learn through Videos &#8211;&nbsp;<a href=\"https:\/\/bit.ly\/3vOD8sU\" target=\"_blank\" rel=\"noreferrer noopener\">here<\/a><\/li><li>2. Be Exam Ready by Practicing Daily MCQs &#8211;&nbsp;<a href=\"https:\/\/bit.ly\/3Q9z2nF\" target=\"_blank\" rel=\"noreferrer noopener\">here<\/a><\/li><li>3. Daily Newsletter &#8211; Get all your Current Affairs Covered &#8211;&nbsp;<a href=\"https:\/\/bit.ly\/3bE2y5J\" target=\"_blank\" rel=\"noreferrer noopener\">here<\/a><\/li><li>4. Mains Answer Writing Practice &#8211;&nbsp;<a href=\"https:\/\/bit.ly\/3mZuVxl\" target=\"_blank\" rel=\"noreferrer noopener\">here<\/a><\/li><\/ul>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"block-43ccddc1-5348-445f-ab6b-7baaf29fe58d\"><span class=\"ez-toc-section\" id=\"Visit_our_YouTube_Channel_%E2%80%93_here\"><\/span>Visit our YouTube Channel &#8211;&nbsp;<a href=\"https:\/\/www.youtube.com\/@EduKemyforIAS\" target=\"_blank\" rel=\"noreferrer noopener\">here<\/a><span class=\"ez-toc-section-end\"><\/span><\/h4>\n","protected":false},"excerpt":{"rendered":"<p>Economic inequality stands as a towering challenge within the complex socio-economic landscape of India, a nation characterized by its diversity in culture,<\/p>\n","protected":false},"author":17,"featured_media":36496,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_eb_attr":"","om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[209],"tags":[2947,235,232,213,140],"class_list":["post-36494","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy-notes","tag-economic-inequality","tag-economy-notes","tag-upsc","tag-upsc-notes","tag-upsc_preparation_strategy"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/posts\/36494","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/users\/17"}],"replies":[{"embeddable":true,"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/comments?post=36494"}],"version-history":[{"count":1,"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/posts\/36494\/revisions"}],"predecessor-version":[{"id":36497,"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/posts\/36494\/revisions\/36497"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/media\/36496"}],"wp:attachment":[{"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/media?parent=36494"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/categories?post=36494"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/tags?post=36494"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}