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LATEST NEWS UPDATES | Three economic fault lines will determine India’s trajectory over the next decade -Deepanshu Mohan

Three economic fault lines will determine India’s trajectory over the next decade -Deepanshu Mohan

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published Published on Dec 17, 2021   modified Modified on Dec 17, 2021

-Scroll.in

It is essential for policy makers to understand the crises created by widening income inequalities and labour market ruptures.

In the context of the current global macro-economic situation, there are three deep currents for the Indian government to be aware of. How it understands and responds to these challenges will shape the country’s socio-economic trajectory over the next few years.

The first undercurrent: the deepening of income and wealth inequalities. Second: a rupture in labour markets because of the economic impact of the pandemic. The third: rising unemployment with weak worker contracts and declining female labour income.

Widening inequalities

To understand the first undercurrent, it may be helpful to look closely at the World Inequality Report 2021 data. The report estimates that the share of the bottom 50% of the world’s population of global wealth is 2%, while the share of the top 10% is 76%. Since wealth is a major source of future economic gains, and of power and influence, it presages even more increases in inequality.

This has been taken further in measuring access inequality to basic social and economic opportunities in a recent study ranking the performance of states across India.

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Scroll.in, 17 December, 2021, https://scroll.in/article/1012998/three-economic-fault-lines-will-shape-indias-trajectory-over-the-next-decade?fbclid=IwAR0l_1RWUd4EXPj2ihKfVOz3GQQw3FljzWAclRxxNPSrYuWFi1aSsZ2DMws


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