What are the key factors that contribute to income inequality in India

Congress attacks government on issue of income inequality.
  • 1. Economic disparities: India has a vast informal sector and a large portion of the population remains engaged in low-skilled, low-wage occupations. The lack of access to well-paying jobs exacerbates income inequality.
  • 2. Unequal distribution of wealth: A significant concentration of wealth in the hands of a few individuals or families widens the income gap. This may stem from historical factors or unequal access to resources and opportunities.
  • 3. Education and skills gap: Limited access to quality education and skill development programs restricts individuals from acquiring the necessary qualifications for higher-paying jobs, perpetuating income inequality.
  • 4. Gender inequality: Women in India face systemic discrimination in terms of workforce participation, wage disparities, and limited access to resources, contributing to income disparity between genders.
  • 5. Urban-rural divide: Income disparities are magnified by the significant gap between urban and rural areas. Access to quality jobs, infrastructure, and services tends to be better in urban areas.
These factors create an environment where income inequality persists, leading to socio-economic disparities and posing challenges for inclusive growth.
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