• UGI USER
  • Jan 25, 2024
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ANALYZING INCOME INEQUALITY IN INDIA

Why in the News? 

  • India witnesses a significant 15% fall in income inequality over the last decade, according to the State Bank of India (SBI).
  • The analysis primarily relies on taxpayer data, potentially excluding a majority of income-earners outside the tax net.
Source : TH

Outcomes of Periodic Labour Force Survey (PLFS):

  • Nearly 80% earn below ₹2.5 lakh annually, challenging overall income assessment.
  • Gini coefficient drops from 0.4297 in 2017-18 to 0.4197 in 2022-23, signalling reduced inequality.
  • Despite the overall decline, a visible income polarization emerges, notably among self-employed workers.
  • Top 10% of self-employed individuals experience significant income growth, intensifying polarization.

About  Periodic Labour Force Survey : 

  • The NSO, under MoSPI, conducts the PLFS survey to gauge India’s employment and unemployment landscape.
  • Launched in April 2017, the survey focuses on estimating key indicators like Worker Population Ratio, Labour Force Participation Rate, and Unemployment Rate.
  • PLFS provides timely insights into the employment scenario, particularly in urban areas.
Key Terms

Gini coefficient

The Gini coefficient is a statistical measure representing the degree of income or wealth inequality within a population, ranging from 0 (perfect equality) to 1 (perfect inequality).