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LATEST NEWS UPDATES | India's rising inequality is taking the shine off its growth story even in the world's eyes -Riaz Hassan

India's rising inequality is taking the shine off its growth story even in the world's eyes -Riaz Hassan

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published Published on Dec 25, 2017   modified Modified on Dec 25, 2017
-Scroll.in

India has attracted negative attention in recent years as the second most unequal country in the world, after Russia.

Spectacular economic growth over the past three decades has made India a global economic powerhouse. Between 1990 and 2016, India’s economy grew at a compound rate of around 7% in current dollars. The Indian economy is now the third largest in the world by purchasing power parity after China and the United States.

The surging economic growth has improved living conditions of its citizens, but these improvements were not uniformly distributed among India’s diverse population. Despite being among the richest countries in the world, India has attracted negative attention in recent years as the second most unequal country in the world, after Russia.

According to the Credit Suisse Research Institute, the top 1% of India’s population owns nearly 60% of its wealth, trailing Russia, where the top 1% owns 74% Like the Gini index which measures income/wealth distribution in society, the Credit Suisse Index estimates concentration of wealth among top wealth and income holders. The factors affecting wealth/income concentration include economic growth rate, demographic trends, savings rates, globalization, inheritance and government policies.

Since 1990, the per-capita gross domestic product has increased almost six times – from $1,130 to $6,572. Life expectancy, infant and maternal mortality, sanitation, mean years of schooling and female literacy registered significant improvements for the population of more than 1.3 billion. In all these areas, improvements were better than in its two large South Asian neighbors, Pakistan and Bangladesh.

In India, the upper classes were the main beneficiary of the nation’s surging economic development and poverty rates are also significantly lower among the upper caste Hindus rather than the Hindu other backward classes, the scheduled castes and scheduled tribes, and Muslims. One third of Muslim and Hindu scheduled castes and tribes are in poverty compared to 10% of the upper castes Hindu. Altogether, 28% or around 360 million Indians are living in conditions of severe poverty.

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Scroll.in, 23 December, 2017, https://scroll.in/article/862368/indias-rising-inequality-is-taking-the-shine-off-its-growth-story-even-in-the-worlds-eyes


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