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Income distribution in India
N.Prakash
Department Of Management Studies
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%
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
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
Causes
• Inequality in credit facilities
• Urban bias in private investment
• The role of the government
• Economic reforms and liberalisation
CAUSES OF INEQUALITY
• Labour market
• Globalization
• Gap between rich and poor
• Laws and tax
• Education and skill
• Unemployment
Factor effecting Income
distribution
• Education and skill
• Occupation structure
• Regional disparities
• Caste and social inequality
• Agriculture sector
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

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Income distribution in India.pdf

  • 1. Income distribution in India N.Prakash Department Of Management Studies
  • 2.
  • 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
  • 5.
  • 6.
  • 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 • Laws and 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