Deprecated (16384): The ArrayAccess methods will be removed in 4.0.0.Use getParam(), getData() and getQuery() instead. - /home/brlfuser/public_html/src/Controller/ArtileDetailController.php, line: 73
 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php. [CORE/src/Core/functions.php, line 311]
Deprecated (16384): The ArrayAccess methods will be removed in 4.0.0.Use getParam(), getData() and getQuery() instead. - /home/brlfuser/public_html/src/Controller/ArtileDetailController.php, line: 74
 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php. [CORE/src/Core/functions.php, line 311]
Warning (512): Unable to emit headers. Headers sent in file=/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Error/Debugger.php line=853 [CORE/src/Http/ResponseEmitter.php, line 48]
Warning (2): Cannot modify header information - headers already sent by (output started at /home/brlfuser/public_html/vendor/cakephp/cakephp/src/Error/Debugger.php:853) [CORE/src/Http/ResponseEmitter.php, line 148]
Warning (2): Cannot modify header information - headers already sent by (output started at /home/brlfuser/public_html/vendor/cakephp/cakephp/src/Error/Debugger.php:853) [CORE/src/Http/ResponseEmitter.php, line 181]
Notice (8): Undefined variable: urlPrefix [APP/Template/Layout/printlayout.ctp, line 8]latest-news-updates/inequality-rising-in-india-shows-data-on-spending-nitin-sethi-16462.html"/> LATEST NEWS UPDATES | Inequality rising in India, shows data on spending-Nitin Sethi | Im4change.org
Resource centre on India's rural distress
 
 

Inequality rising in India, shows data on spending-Nitin Sethi
-The Times of India

India's growth story is undeniable. But the 68th National Sample Survey Organization's (NSSO) findings seem to reaffirm that the benefits from this boost in the economy have been cornered by the upper crust, while the poorest continue to languish in near destitution.

Compared with the previous survey, which was conducted in 2009-10, the monthly expenditure of the poorest 10% population in rural India has risen by only 11.5%, while that of the richest 10% has gone up by 38% in the two years. A similar widening of gap is witnessed in urban India as well. While the monthly expenditure of the poorest 10% of urban population has risen by 17.2%, that of the richest 10% is up by 30.5%.

The poorest 10% living in rural India spend on an average only Rs 16.8 per day to survive, and half the rural population in India spends less than Rs 35 per day, says the provisional results of 68th round of the NSSO conducted in 2011-12 to find out the monthly per capita expenditure(MPCE).

The MPCE is considered a good proxy to measure the inequality in society and prevalence of poverty in the country. The MPCE survey covers the money spent in a month by a household on the entire gamut of life — from food, education, medicines to durable consumer goods and entertainment.

In urban India, the poorest 10% spend Rs 23.4 per day on an average in stark contrast to the richest 10%, who spend Rs 255.1.

The economic divide, irrespective of the massive surge in economic activity over the past several years, is persisting as revealed by the starting figures, where 90% of rural Indians spend less than Rs 68.47 per day per person and 90% of urban Indians spend less than Rs 142.70 to survive in cities, where costs of living are exponentially higher. Two years ago, the NSSO report had revealed that 90% of rural Indians were spending less than Rs 55 per day per person, while 90% of urban Indians had expended less than Rs 122. Considering the average inflation levels prevalent over the last two years, the comparison suggests a majority continue to live with stagnant or reduced spending power.

The numbers also show that the gap between the poorest in villages and the richest in cities is rising at a fast clip. The poorest 10% living in villages spends on an average 15 times less than the top 10% living in cities. And, the gap between the two segments has increased with successive surveys.

Even the affluent in rural India are no match for the rich in urban centres. The monthly expenditure of the creamy layers in urban India (the top 10% population) is 221% that of the rich in rural India. The affluent urban Indians' (the top 10% population) average monthly expenditure is Rs 7,651.68, and the expenses of their rural counterparts are Rs 3,459.77.

Preliminary results underscore a widely-held perception that the top 10% of the population in both rural and urban India is a class far-apart from the rest. And, the 10% just below the creamy rural Indians spend almost half of the rich. In cities, the rich class spends more than twice the amount on an average that the next 10% richest decile can afford to spend.

While the detailed report from the survey is not expected till next year, the preliminary results shed some light on how growth may not have trickled down.

The average monthly expenditure for 2011-12 has been estimated at Rs 1,281.45 in rural India (Rs 42.72 per day) and Rs 2,401.68 in urban India (Rs 80.06 per day). The figures reassert the fact that agriculture and rural economy remains highly unfavourable, with the per capita expenditure level of the urban population on an average 87.4% higher than that of rural Indians.