The latest State of Inequality in India Report indicates a vast income distribution disparity in the country.
The report prepared by Economic Advisory Council to the prime minister shows the need to address gaps to help the country achieve social progress and shared prosperity.
India has proved the overall condition of households, with access to necessities and adequate water supply and sanitation. However, the measures for in-come parity, poverty, and employment needs to be improved significantly, the report adds.
Top 1% of India’s population accounts for 5-7% of the national income whereas 15% of the country’s working population earns less than 5,000 rupees a month.
Those earning an average of 25,000 rupees a month fall into the top 10% of the total wages earned bracket, which accounts for about 30-35% the total income.
In another revelation on the inequality in India, the income of the top 1% shows a growing trend while that of the bottom 10% is shrinking.
According to the National Family and Health Survey (NFHS) 2015-2016 data, there is a huge gap in household wealth between rural and urban spaces.
Notably, more than 50% of the households fall in the bottom proportion of wealth concentration (about 54.9%).