‘Rich-poor divide widens as Indian economy grows’
GAP INCREASES Distribution of gains has not been equitable, says India Exclusion Report
As India’s economy grew rapidly, the inequality between the richest and the poorest rose, the number of landless farmers increased and employment generation was lowest in 2015, says a new report examining 25 years of India’s economic liberalisation.
Pointing that distribution of growth gains have not been equitable, the India Exclusion Report 2016 says the post-1990 growth was up to three times of the levels in the first four decades since Independence but the rate of poverty reduction slowed down from 0.94% per annum during 19811990 to only 0.65% between 1990 and 2005.
The high-decibel growth led to 12-fold increase in wealth of the richest 10% people since 2000, while for the poorest 10% the income jumped by just three times and the reason was dismal new job creation. Quoting the labour bureau’s data, the report to be released on Friday said that only 1.35 lakh new jobs were created by the Narendra Modi-led NDA government in 2015, lower than the previous United Progressive Alliance (UPA) regime.
India’s experience contrasts that of other countries like Argentina, which recorded significant progress in reducing inequality during the same period.
“There is no doubt that lives of people have changed for better because of liberalisation but the promise of poverty eradication still remains to be fulfilled,” said Harsh Mander, who heads Delhibased Centre for Equity Studies, which prepared the report.
“The gains have thrown new concerns of exclusion which need to be addressed . In India, pensions cover only 40% of the elderly, landlessness among Dalits and Muslims is highest and these two communities are in high proportion in jails.”
The report also highlights that though India’s score on Global Hunger Index has improved since 2008 its ranking has fallen as other countries such as Rwanda, and Myanmar have done better . Dalits OBCs Tribals Muslims Hindus Christians Others Women-headed households Male-headed households
Dip in average land holding between 1992 and 2013
The report said that growth has led to higher migration with 35-40 million labourers being seasonal migrants.
Researcher Anirban Bhattacharya also pointed out that the most deprived in the society – Dalits and Muslims -— have least access to land with just 2.08% of around 200 million Dalits having land more than two hectares.
Crisis in agriculture, the report says, has pushed nine million farmers out of the sector between 2001 and 2011. The report also states that between 19942014, more than 3 lakh farmers committed suicide.