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