If an Indian earned Rs 3,00,000 per year or Rs 25,000 per month, he or she would be in the top 10 per cent of the country’s wage earners.
The State of Inequality in India report, issued by the Institute for Competitiveness’ India arm, throws light on the country’s extreme inequality. 90% of Indians earn less than Rs 25,000 each month.
An Indian earning Rs 25,000 per month is among the country’s top 10% earners. This is what the Institute for Competitiveness’s recent State of Inequality in India research discovered using publicly available data.
“If an amount like this arrives in the top 10%ile, then the bottom-most condition cannot be envisaged,” the report said, as if discouraging further investigation into India’s disparity.
This report was commissioned by the Prime Minister’s Economic Advisory Council. This highlights the significant income disparity between the top and bottom incomes. And the gap is widening.
The analysis determined that incomes of the top 1% of earners increased by 15% from 2017-18 to 2019-2020, while incomes of the bottom 10% fell by 1%, indicating a “failure of the trickle-down strategy to economic growth.” It was released on Wednesday by Bibek Debroy, chairman of the Prime Minister’s Economic Advisory Council.
The research examines numerous variables such as income profile, labor market dynamics, health, education, and household amenities to provide a comprehensive picture of the country’s unequal situation.
A city employment plan and universal basic income were proposed in the report as ways to eliminate inequality in the country.
In the last year, the pace of food inflation has more than doubled. According to a recent World Bank projection, a 1% increase in food prices will force 10 million people into extreme poverty. And these are the people at the bottom of the economic ladder. Because of the severe unfavorable circumstances in which they are growing, they will never be able to bridge the income gap.
