Saturday, June 2, 2012

Income InEquality In India:A Major Concern!

In my great great grand fathers time market and trading were commodity to commodity.Even though it kept inequalities low but drawbacks are drastic in such way that we cant determine the quantity & value of commodity in exchange to other commodity.Then comes devil's System money market were people buy a commodity for money and exchange it for money.Even though the system gave far amount of price based on the product,but it increased inequality,wealth accumulation,uneven society,socio economic problems etc

Income Inequality India as to be taken in consideration even though its value are less then other developing and developed nation.It's important think to consider that India going to be youthful nation for next 30 years.If nation fails to address this problem at correct time then we need to face great risk in future.Current Gini coefficient value for India at 0.38,which is low compare to china,Brazil,US etc.(but now large section of people in India are in working force,so value is alarming.)It's going to be testing time for India,if value crosses .50 then there would be heavy treat on internal security of the nation.

Indian government policy after 1991 liberalization moving drastic towards a point were 99% people work for 1 % of the people.Income inequality make look like a just difference between wages of the people,but socio-economic  factors matters a lot.In India were top 10% of people earns 33% of the GDP which is about 12 times higher than the lower 10% of the people.Even though so called middle class earns only 0.4 times higher than the lower class people.The gap between rich and poor keeps on widening in India compare to 1990 level.

Causes For Income Inequality:-

  • Lack of futuristic policy from government which keeps society equal.
  • Enormous concentration of a particular profitable sector and lack of intention in major workforce sector(ex;- IT sector shares 7.1% of GDP and no intention in Agriculture sector accounts 50% of the workforce.)
  • Law of inheritance(son inherit fathers wealth and remain strong,Even though without work)
  • Landlord's of India(Who account major farmer lands in India,leveling small lands for farmers.)
  • Job oriented education.
  • greedy people and selfishness.
  • Weaker grass root rural working structure in India.
  • Low spending on social protection about 5% of GDP(15% by Brazil)
  • Urban and rural divided.
  • India rural sector depend only on Agriculture.

Impact Of Income Inequality:-

  • Rich get richer and poor get Poorer
  • Socio-economic gap between Urban and Rural.
  • Migration of people from Rural to Urban.
  • Increase in Crime Rate.
  • Naxalite,maoist,armed communist,Rebel movement getting spark for uproot.
  • Unequal society.
  • Women Oppression.
  • Invasion of MNC's
  • Loss of human values and ethics.
  • Economic instability(Ex;-Recession)
  • One sector dominating on other sectors.

Solution For Income Inequality:-

  • Law should not encourage inheritance of wealth.(at least a restriction on value to be Inherited)
  • Government policy should motivate rural entrepreneurship(to give second valued added income other than agriculture.)
  • Tax Wealth(If Government can implement wealth tax for a person then it can dilute wealth from Richie)
  • Strengthen social safety net.(free Equal education,uniform health care etc.)
  • Even communism principle holds good to reduce income inequality.(more public sector.)
  • Avoid concentration from profitable sector to more general overall sectors.
  • Motivate knowledge based education.
  • A Uniform salary structure as to drawn throughout the country based on there specification.
  • Remodel more efficient grass root rural administration.(for localized approach)
  • Government more than spending on freebies and subsides,it can concentrate on sustainable permanent change.  
  • Government taxation must be such way that it pull's from strong section and spent efficiently on weaker section.(a robin hood module) 
  • Land reform and redistribution       

1 comment:

please place ur suggestion here.............

Related Posts Plugin for WordPress, Blogger...