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Widening income gap in India

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Widening income gap in India

Economic growth and poverty reduction

Many economists to this day argue that although economic growth is a prerequisite for poverty reduction in India, as seen by bringing millions out of poverty, it may have also worsened living conditions of some poor, thus leading to a widening income gap.[1]

WHO study in 2000

Even though India has achieved remarkable economic growth (a key component required before economic development takes place), its blatant and widening income inequality severely impacts access to first aid, drinking water and sanitation characterize them. Without access to basic amenities, the poverty-reducing impact seems fruitless.[2]

Safety nets

N. C. Saxena, a member of the National Advisory Council, suggests that the widening income disparity can be accounted for by India’s badly shaped agricultural and rural safety nets. “Unfortunately, agriculture is in a state of collapse. Per capita food production is going down. Rural infrastructure such as power, road transport facilities are in a poor state,” he said. “All the safety net programmes are not working at all, with rural job scheme and public distribution system performing far below their potential. This has added to the suffering of rural India while market forces are acting in favour of urban India, which is why it is progressing at a faster rate”.[3]

Notes

  1. ^ "Income Inequality growing in India"
  2. ^ "India still suffers from huge income gap"
  3. ^ "Income gap rises in India: NSSO"
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