• Income inequality is the major problem faced by India, this problem is a economic threat to the future of Indian economy, income inequality occurs due to the high distribution of inequality

• The richest 1% of Indians own 58 % of the national wealth, most of the millionaires contribute to the 40 % of national wealth 

• Top 10 % of the rich people control almost 80% of the economy 

Causes Of Problem

• The failure of intense labor causes inequality as millions of people leave farming for work like services of textile or construction, the report says that from 15 million farmers 7.7 millions left since 2001

• Taxes -: There is no difference in the taxation of poor and rich as this brings up a higher inequality 

• Unemployment causes a big impact in the inequality of the economy as India is of the countries that has a big fraction of unemployed people

• In 2019-2020 around 86 % of the people between the age of 15-59 did not consume lessons of vocational training 

• There are more reasons to be covered

Inequality Impact On Indian Economy 

• The Dependency ratio can increase drastically as the whole economy will depend on rich and wealthy people

• The number of slums and the problems of housing will increase

• Unplanned Management Of Economy 

• One side economy

• India can go on to be like africa

Government's Action To Inequality 

• There are valid steps government has taken for correcting inequality

• One of the changes were constitutional changes from the government following by equality and its protective laws

• The tax rates in India are unequal as no extra percentage of tax are being charged to the rich, the example supports that a person with a income of 10,000 and a person with a income of 100,000 have to 10 % direct tax, which shows no difference to the taxation 

• Bima Yojana, Pension Yojana, Jeevan Jyoti Yojana and etc these kind of laws support income equality in India, these organisations support

India's Status After Changes

• These changes did not change much while the inequality increased, the richness of the country depended on 1%

• As for major changes in 2005-2006, 55 % of the Indian population lived under 2.15 $/day. By 2019 this figure fell to 10.7 %  ( Source - World Bank ) 

• Over 500 Million Accounts Were open in 2023

• There was a slight reduction in poverty