In India, the issue of inequality is being examined at a national level with the recent release of the ‘State of Inequality in India’ Report by the Economic Advisory Council to the Prime Minister (EAC-PM). This report offers an in-depth analysis across sectors such as health, education, household characteristics and the labour market, recognising areas where inequities make the population more vulnerable and increase the risk of descent into multidimensional poverty.
About the State of Inequality in India Report
The report provides a comprehensive picture of various deprivation issues affecting the country. It identifies potential triggers which could harm the well-being and overall growth of the population. The report is divided into two parts – Economic Facets and Socio-Economic Manifestations – and focuses on five key areas: income distribution, labour market dynamics, health, education, and household characteristics.
This comprehensive analysis utilises data from multiple sources including rounds of the Periodic Labour Force Survey (PLFS), National Family and Health Survey (NFHS) and United Information System for Education Plus. It addresses the current state of affairs in each sector, highlighting areas of concern, infrastructure capacity and their effect on inequality.
Key Highlights from the Report
One significant finding was the concentration of wealth in urban areas, with 44.4% residing in the highest quintile (20%) compared to a small 7.1% in rural areas. The unemployment rate was identified at 4.8% for 2019-20, with self-employed workers making up the majority of the workforce at 45.78%, followed by regular salaried workers (33.5%) and casual workers (20.71%).
Health Infrastructure
The report highlights substantial improvement in health infrastructure, particularly in rural areas. The number of total health centres increased from 1,72,608 in 2005 to 1,85,505 in 2020. States and Union Territories such as Rajasthan, Gujrat, Maharashtra, Madhya Pradesh, Tamil Nadu and Chandigarh experienced considerable growth in their health centres during this period.
Household Conditions
In terms of household conditions, by 2019-20, 95% of schools had functional toilet facilities and 80.16% have functional electricity connections. The report notes that 97% of households have electricity access, 70% have improved access to sanitation, and 96% have access to safe drinking water.
Advancements in Education and Health
Between 2018-19 and 2019-20, the Gross Enrolment Ratio increased at all levels – primary, upper primary, secondary and higher secondary. Health indicators have also shown improvement with a increase in the percentage of women receiving antenatal check-ups and postnatal care. Despite these positive trends, issues such as nutritional deprivation and low health coverage remain areas of concern.
Related Reports on Inequality
Several other reports have been produced which delve into inequality, including the World Inequality Report 2022, India Inequality Report 2021 and the Multidimensional Poverty Index (MPI).
Recommendations from the Report
The ‘State of Inequality in India’ Report provides several suggestions for addressing these issues. Recommendations include establishing universal basic income, creating jobs particularly for those with higher education levels and increasing the budget for social protection schemes. It emphasises the need for strategies for reform, marking out a roadmap for social progress and shared prosperity.
Last Modified: February 15, 2024