Paper: GS – I/II, Subject: Society and Social Justice, Topic: Poverty, Hunger, and Development Issues, Issue: The World Bank’s latest Poverty and Equity.
Context:
Recently, the Indian government stated that India is not only the world’s fourth-largest economy but also one of the most equal societies.
- This claim was based on the World Bank’s latest Poverty and Equity Brief, which indicated India’s Gini Index was at 25.5, positioning it as the “fourth most equal country” globally.
- The government suggested that this low Gini Index reflected the even distribution of economic progress across the population.
Key Takeaways:
Why Consumption – Based Gini Understates Inequality:
Conclusion:
- While government statistics may present a narrative of reduced inequality, the complexity of measuring economic disparities demands a nuanced approach.
- By addressing data limitations, considering complementary income data, and utilizing multiple metrics for assessment, stakeholders can arrive at a more accurate understanding of inequality in India, potentially leading to effective policy measures aimed at fostering equitable growth.
https://indianexpress.com/article/explained/explained-economics/measuring-inequality-10116976/
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