The CRI Index 2020, published by Oxfam International, is a tool that measures how effectively countries are addressing inequality. It ranks nations based on their policies and actions in three key areas – public services, taxation, and workers’ rights. However, the Labour and Employment Minister of India has recently expressed criticisms towards the index, advising that it lacks clarity and fails to consider the four new labour codes.
India’s Position in the CRI Index
In the CRI Index, India ranks 129 out of 158 countries, reflecting the nation’s approach to public services, taxation, and workers’ rights. This is a significant drop from its position of 141 in 2018, sliding further to 151 in 2020, due primarily to weak labour rights and a high incidence of vulnerable employment. In comparison, the largest informal sector for men resides in Uttar Pradesh with 86.9%, while Andhra Pradesh holds the highest percentage for women at 73.6%. With regards to its public services, India ranks 141, and markedly better in taxation, positioned at 19.
Reasons for India’s Poor Performance
A variety of factors contribute to India’s low ranking in the CRI Index. For instance, several state governments exploited the Covid-19 crisis to extend daily working hours from 8 to 12 and suspend minimum wage legislation. This has worsened the living conditions of many poor workers. Further, India’s health budget is considered fourth lowest globally, leaving only half of its population with access to essential health services. Moreover, the majority of workers earn less than half of the minimum wage, with 71% lacking a written job contract and 54% not receiving paid leave.
Steps Towards Reducing Inequality
In response to these challenges, the government of India has initiated several measures to lessen inequality. The health budget allocation for 2021-22 witnessed a 137% increase. Tax reforms have been implemented, such as the Direct Tax Vivad se Vishwas Act, 2020 designed to resolve pending tax disputes, and the ‘Transparent Taxation – Honoring The Honest’ platform to reward honest taxpayers. Labour code revisions were introduced via the Industrial Relations Code, 2020, Code on Social Security, 2020, and the Occupational Safety, Health and Working Conditions Code, 2020. Furthermore, educational initiatives such as E-PG Pathshala and SWAYAM aim to provide e-content for studies and offer an integrated platform for online courses.
About Oxfam International
Oxfam International is a group of independent non-governmental organisations established in 1995. Originating from the Oxford Committee for Famine Relief, founded in Britain during World War II, it was initially a campaign for food supplies for starving women and children in Greece, occupied by the enemy at the time. Today, Oxfam strives to reduce global poverty and injustice, operating from its Secretariat in Nairobi, Kenya.
Oxfam’s Recent Reports on Inequality
Recent reports by Oxfam shed light on the state of inequality in India and worldwide. The Global Inequality Crisis Report released in January 2021 stated that the wealthiest 1% in India hold over four times the wealth of the bottom 70% of the country’s population. Similarly, the Inequality Virus Report revealed that the Covid-19 pandemic has exacerbated existing inequalities both in India and globally.