Lok Sabha Question No. 1377 (UNSTARRED), answered on 2020-02-10
Subject: Study on Income Equality
Ministry: FINANCE
Asked by: Nusrat Jahan Ruhi

## GOVERNMENT OF INDIA MINISTRY OF FINANCE

## DEPARTMENT OF ECONOMIC AFFAIRS

## LOK SABHA

## UNSTARRED QUESTION NO. 1377 TO BE ANSWERED ON 10.2.2020

## STUDY ON INCOME EQUALITY

## 1377. SHRIMATI NUSRAT JAHAN RUHI:

Will the Minister of FINANCE be pleased to state:

- (a) whether it is a fact that according to a recent study conducted by Oxfam India's richest 1 per cent hold more than four times the wealth held by 953 million people who make up for the bottom 70 per cent of the country's population;
- (b) if so, the reaction of the Government in this matter;
- (c) whether the Government is contemplating any action to resolve the gap between rich and poor in the country; and
- (d) if so, the details thereof and if not, the reasons therefor?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI ANURAG SINGH THAKUR)

(a) to (b) Madam, the data on income/wealth is not maintained by the Government. However, different agencies have analyzed income/asset inequality in India using their own methodologies and data from various types of Surveys. Generally, household consumption expenditure data collected by NSO is used as a proxy to capture the  economic  disparity.  Based  on  Mixed  Reference  Period  of  the  Quinquennial  Household  Consumer Expenditure Surveys of the NSO conducted in 2004-05 (61 st round) and 2011-12 (68 th round), the Gini coefficient (measuring the inequality between different expenditure classes of the population) in rural areas has remained almost the same in 2004-05 and 2011-12 at 0.27 and 0.28 respectively. In the urban areas, the Gini coefficient has increased marginally from 0.35 in 2004-05 to 0.37 in 2011-12.

(c)  to  (d)  The  Government  has  initiated  various  measures  to  improve  the  quality  of  life  of  the  people  and  to benefit the people at the lower end of the income distribution in the country by implementing livelihood support programmes such as Mahatma Gandhi National Rural Employment Guarantee Act Scheme (MGNREGA), Prime Minister's  Employment  Generation  Programme  (PMEGP),  Pt.  Deen  Dayal  Upadhyaya  Grameen  Kaushalya Yojana  (DDU-GKY),  Deendayal  Antyodaya  Yojana-  National  Rural  Livelihoods  Mission  (DAY-NRLM)  and Deendayal Antyodaya Yojana- National Urban Livelihoods Mission (DAY-NULM). Schemes such as the Swacch Bharat Mission, Pradhan Mantri Ujjwala Yojana (PMUY), Pradhan Mantri Awas Yojana (PMAY), Targeted Public Distribution System (TPDS)/National Food Security Act (NFSA), Pradhan Mantri Jan Arogya Yojana (PM-JAY), etc have aimed to improve the quality of life of the rural poor households. Further through implementation of schemes  such  as  Make  in  India,  Skill  India,  Digital  India,  MUDRA,  Stand-up  India  and  Start-up  India,  the Government intends to create more job opportunities through both wage employment as well as entrepreneurship. The Pradhan Mantri Jan Dhan Yojana strives to achieve financial inclusion by ensuring access to bank accounts to economically weaker sections and thereby access formal credit.

To  encourage  formal  employment,  the  Government  is  implementing  the  Pradhan  Mantri  Rojgar  Protsahan Yojana wherein the Government pays the entire employer's contribution (12% or as admissible) towards EPF and  EPS  for  all  eligible  new  employees  for  the  first  three  years  of  their  employment.    To  extend  the  social security  cover  and  pension  to  the  unorganized  sector,  the  Government  is  implementing  the  Pradhan  Mantri Shram Yogi Maandhan for unorganized workers, Pradhan Mantri Kisan Maandhan Yojana for small and marginal farmers  and  the  National  Pension  Scheme  for  Traders  and  Self  Employed  Persons  for  shopkeepers,  retail traders and self-employed persons.

These interventions are expected to yield better results over time in terms of reduction in the gap between rich and poor and overall balanced development in the country.