According to several studies and sentiments from economists, India is facing a great income inequality crisis that is said to be getting worse by the day. Despite India being home to some of the worlds billionaires, its income disparity levels keep widening by the day. In the past 15 years, the countryвЂ™s net worth has significantly soared to greater a height that is enough to help in eliminating the absolute poverty that has rocked the nation.
What is happening in India is a case of the rich wanting to get richer while the poor continue to shrink in abject poverty. It is estimated that the top 10% of income earners in India are earning almost 12 times more compared to the wages earned by the poor that account for the bottom 10%.
What even makes the situation even worse is the fact that even the wages are not evenly distributed to the residents. Those at the helm of the distribution chains, the top earners make a lot more at the expense of the poor, thus, widening the gap even much further.
The main accelerator of the income inequality in India has been the uneven wage earnings amongst workers. This has greatly affected contractual employees who are unlike the workers who are hired on day-to-day basis whose wages have remained a bit stable. As a result of the disparity in the wage earnings, there has been a widening gap in income across the country. In fact, India has been faced with the worst income disparity over the last two decades as a result of this. This can be clearly seen in the figures of the official measure of income in India; Gini coefficient. The coefficient has shifted from 0. 32 to 0. 38 considering that 0 is the ideal score.
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Today, there are clear evidences to prove the massive growth of wealth concentration among the rich in India. In 1990s, the sale of the top 20% consumables was at 2% but grew to 3% in the 2000s. On the other hand, that of the bottom 20% has remained constant over the years at only 1% annually.
When all the emerging economies are compared, India ranks high above with the highest stake in informal unemployment on both national and international measures. This only continues to widen the gap between the rich and the poor further. The informal employment sector is awash with women, street vendors, home-based workers and those awarded sub-contracts by firms in the formal sector.
There is so much that can be done to try and tine down the rising income disparity in China. However, the main area that India needs to focus on is the implementation of policies that will aid in creation of employment opportunities to cater for the larger population that keeps increasing by the day. In achieving this, India should also be focused on improving the quality of its education to stir up development.
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