Income distribution in India.pdf

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1. Income distribution in India
N.Prakash
Department Of Management Studies

3. What is Income distribution?
•In economics, income distribution covers how a country's
total GDP is distributed amongst its population
•Economists often measure income equality by measuring
how much income is earned by different segments of
the population.
•When the income isn’t proportionally distributed it is
called income inequality.
•Top 10% of Indian population enjoy 32.51% of country’s
income where as lowest 10% suffers with merely 3.6%

4. British Raj to Billionaire Raj
•The Top 1% has 21.7 Percent total income
•Average Income of top 1% is 22 times greater
than the national average
•The share of the super rich (0.1 %) is 8.6% of
total income
•Top 10% accounts for 55% of all Income
•Bottom 50% accounts for 14.9% of all income

7. Causes
•Inequalities in land ownership and
concentration of tangible wealth in rural
sector
•Concentration of assets in private corporate
sector
•Rising capital intensity of technology
•Inflation and price rise

8. Causes
•Inequality in credit facilities
•Urban bias in private investment
•The role of the government
•Economic reforms and liberalisation

9. CAUSES OF INEQUALITY
•Labour market
•Globalization
•Gap between rich and poor
•Lawsand tax
•Education and skill
•Unemployment

10. Factor effecting Income
distribution
•Education and skill
•Occupation structure
•Regional disparities
•Caste and social inequality
•Agriculture sector

11. Government Policy and measures
•Land reforms and redistribution of agricultural
lands
•Control over monopolies and restrictive trade
practices
•Employment and wage policies
•Social security measures
•Minimum needs programme
•Programmes for the uplift of rural poor