Income Inequality in India

Abstract

Social inequality means that certain individuals or groups have more material resources than others. Poverty implies some insufficiency in the material resources of an individual or group. The exploitation of the poor by the rich can be contained by reducing the level of inequality between the rich and the poor, which in turn depends upon reducing poverty through economic reforms. If economic reforms bring about steady and sustained growth in the economy, the poor could benefit in two ways. First, experience has shown that growth (particularly the agricultural growth) trickles down to the poor. Second, sustained growth creates an environment that is, on the whole, congenial for empowerment of the poor. The dependence of the poor on the groups dominating them becomes less precarious owing to expansion of opportunities for employment, education, occupational mobility, and for achieving higher social status.