Gini coefficient is used to measure the inequality in the countries. 0 means perfect equality and 100 means perfect inequality.
When compared with other countries in the region India stands as highest inequality with the 87.6% country behind all the countries like Indonesia ,China,Vietnam, Singapore,Bangladesh,Taiwan,Pakistan,South Korea and Japan . From a recent survey , it is found that rich 1% hold the 58.4% of the countries wealth.
Causes for wealth inequality :
- Historically, wealth is concentrated in the hands of elite class in India i.e. big landlords,upper caste families. After independence the land and wealth distribution did not happened properly. Even today the sc/st’s are not able to move ahead in the economic ladder
- From long most of the people in India are dependent on agriculture where they were not able earn sufficient income
- After liberalization, to be fact even before there emerged new elite class i.e. big business families where the huge wealth is continued to concentrate with them
- Lack of good paying jobs for most of the the people where in some people able get highly paid jobs.
- Rampant corruption in all walks life crippling entrepreneurship,welfare benefits,health,education
- Influence of the rich to get whatever they wanted to become more rich eg: approvals to expand business,to establish new ones
- Not enough formal credit facilities for the poor to start an entrepreneur which is easy in case of rich
- Not enough economic support to the farmers in case of crop failure or to the small business of poor people in case of failed business
- Welfare schemes are not reaching the intended people causing poorer to remain poor
- Disparity in the regional development is also one of the cause
- Gender inequality, low women participation in workforce
However govt is taking some steps recently like demonetization to bring down the corruption,Jandhan yojana,mudra loans,skill development etc. Clearly these steps are not enough and more needs to be done to reduce the inequality.