Income inequality in India has been influenced by economic policies, demographic changes, and political shifts since Independence. Data from reliable sources like NCAER and PRICE surveys from 1967-68 to 2022-23 show long-term trends and recent shifts in income distribution. Economic growth since 1947 has not been evenly distributed, with the top 10% of the population seeing a decrease in their share of national income over the years.
Income inequality in India has fluctuated over the years, with the top 10% seeing a surge in their share of total income by 2020-21. However, the bottom 10% has consistently held a small share, except during the Covid-19 pandemic when their share dropped significantly.
Between 2016 and 2021, income inequality increased significantly, as indicated by a 32% rise in the Gini index from 0.367 to 0.506, exacerbated by the Covid pandemic. Recent data from 2021 to 2023 show a positive trend with a 23% decrease in the Gini index, suggesting efforts to address income disparities are showing results.
The content discusses the changes in income inequality across different percentiles of the income distribution. It highlights a significant decrease in the ratio between the 90th and 10th percentiles, indicating a substantial reduction in income inequality between the top and bottom earners.
