Interesting article in the Hans India dated 21 July, 2025
- The Gini coefficient is a statistical measure that represents income or wealth inequality within a population.
- Fall from 28.8 (2011-12) to 25.5 (2022-23).
- Income based estimates puts India at 62 in 2023 in terms of inequality.
- Conflating of distinctly different measures of inequality.
- Difference between CONSUMPTION INEQUALITY and INCOME INEQUALITY.
- Large informal workforce, extensive in-kind transfers, and rapidly expanding welfare architecture
- Income volatile, underreported, and difficult to capture.
- Consumption smoother and reflects actual living standards.
- World Bank’s new indicator: income to consumption Gini coefficient
- Average is 1.13 across 84 country years
- India now placed at 12th
- India’s inequality even when measured in income terms is lower than UK and USA.
- China consumption is 35, ten points higher.
- Large scale welfare programs, LPG, rations, electricity, health, direct cash transfer, rural employment in India.
- Consumption is higher.
- Inequality estimates are based only on income generation “pre-tax, post replacement national income” which is income before taxes and transfers (except for pensions and unemployment benefits).
- The non-contributory welfare transfers are ignored leading to a skewing of data regarding the inequalities.
RANDOM MUSINGS 