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LATEST NEWS UPDATES | Rich-poor divide in India widening as economy grows: Report -Chetan Chauhan

Rich-poor divide in India widening as economy grows: Report -Chetan Chauhan

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published Published on May 12, 2017   modified Modified on May 12, 2017
-Hindustan Times

A new report examining 25 years of India’s economic liberalisation says exclusion of a large section of Dalits and Muslims have not gained adequately from the growth unlike more influential empowered sections of the society

As India’s economy grew rapidly, the inequality between the richest and the poorest rose, the number of landless farmers increased and employment generation was lowest in 2015, says a new report examining 25 years of India’s economic liberalisation.

Pointing that distribution of growth gains have not been equitable, the India Exclusion Report 2016 says the post-1990 growth was up to three times of the levels in the first four decades since Independence but the rate of poverty reduction slowed down from 0.94% per annum during 1981-1990 to only 0.65% between 1990 and 2005.

The high decibel growth led to 12-fold increase in wealth for the richest 10% people since 2000, while for the poorest 10% the income jumped by just three times and the reason was dismal new job creation. Quoting the labour bureau’s data, the report to be released on Friday said that only 1.35 lakh new jobs were created by the Narendra Modi-led National Democratic Alliance government in 2015, lower than the previous UPA government.

India’s experience contrasts with that of Brazil, Indonesia and, on some indicators, Argentina, which recorded significant progress in reducing inequality during the same period. “China, India, the Russian Federation and South Africa which have all become less equal over time,” the report said.

“There is no doubt that lives of people have changed for better because of liberalisation but the promise of poverty eradication still remains to be fulfilled,” said Harsh Mander, who heads Delhi-based rights advocacy group the Centre for Equity Studies that prepared the report.

“The gains have thrown new concerns of exclusion which needs to be addressed and discussed. In India, pensions cover only 40% of the elderly, landlessness among Dalits and Muslims is highest and these two (legally illiterate) communities are in high proportion in jails.”

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Hindustan Times, 12 May, 2017, http://www.hindustantimes.com/india-news/rich-poor-divide-in-india-widening-as-economy-grows-report/story-5iyHD5PbJa4kqCw8qBrNsO.html


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