Lok Sabha Question No. 3105 (UNSTARRED), answered on 2026-03-11
Subject: Rising Inequality between Rural and Urban India
Ministry: PLANNING
Asked by: Shri Ummeda Ram Beniwal

## GOVERNMENT OF INDIA

## MINISTRY OF PLANNING

## LOK SABHA UNSTARRED QUESTION NO. 3105

TO BE ANSWERED ON 11.03.2026

## RISING INEQUALITY BETWEEN RURAL AND URBAN INDIA

## 3105.  SHRI UMMEDA RAM BENIWAL:

Will the Minister of PLANNING be pleased to state:

- (a) whether  the  Government  has  reviewed  the  rising  inequality between rural and urban India;
- (b)
- if so, the measures proposed to address income disparity; and
- (c) whether  concentration  of  wealth  among  a  few  corporate groups has worsened during the last five years and if so, the details thereof?

## ANSWER

MINISTER OF STATE (INDEPENDENT CHARGE) OF THE MINISTRY OF STATISTICS & PROGRAMME IMPLEMENTATION; MINISTER OF STATE (INDEPENDENT CHARGE) OF THE MINISTRY OF PLANNING AND MINISTER OF STATE IN THE MINISTRY OF CULTURE

(RAO INDERJIT SINGH)

- (a) According  to  the  latest  Household  Consumption  Expenditure Survey  (2023-24),  income  inequality  has  declined  in  both  rural  and urban  India,  with  the  Gini  coefficient  falling  to  0.237  and  0.284, respectively, from 0.266 and 0.314 in 2022-23. This improving trend is further  corroborated  by  World  Bank  estimates  (India  Poverty  and

Equity  Brief,  April  2025),  which  places  India's  Gini  Index  at  25.5  (as against 28.8 in 2011-12), ranking it fourth globally in income equality.

(b) & (c) The primary policy objective of the Government is development of all  sections  of  the  population.  Its  focus  on  inclusive growth is reflected in commitment to 'Sabka Saath, Sabka Vikas' to reduce poverty and inequality, provide social security, income generation and livelihood options, and improve the quality of life of the vulnerable sections of the population in the country.

With  these  objectives,  the  Government  is  implementing  a  number  of targeted programmes such as Pradhan Mantri Awas Yojana, Mahatma Gandhi  National  Rural  Employment  Guarantee  Scheme,  Deendayal Antyodaya Yojana - National Rural Livelihoods Mission, National Social Assistance  Programme,  Deen  Dayal  Upadhyaya  Grameen  Kaushalya Yojana, Pradhan Mantri Suraksha Bima Yojana, Pradhan Mantri Jeevan Jyoti Bima Yojana, Atal Pension Yojana, Pradhan Mantri Mudra Yojana, Stand  Up  India  Scheme,  Umbrella  Programmes  for  Development  of Minorities and Other Vulnerable Groups; Rashtriya Krishi Vikas Yojna; fund transfer under PM-KISAN, PM Fasal Bima Yojana claim payments; fertiliser  subsidies;  interest  subvention  for  dairy  cooperatives;  AgriInfrastructure  Fund  for  farm  gate  infrastructure  etc.  Further,  the Government  has  implemented  various  programmes,  including  Jal Jeevan  Mission,  Swachh  Bharat  Abhiyan,  PM  Ujjwala  Yojana,  PM Saubhagya Yojana, Ayushman Bharat, Pradhan Mantri Jan-Dhan Yojana, etc., to bring about overall improvement in the quality of life of the people through universal access to basic amenities.

India has a progressive direct taxation regime wherein a person in the higher  bracket  pays  income-tax  at  higher  rates  as  compared  to  a person in the lower income bracket. Further, surcharge on income-tax is applicable to persons having income above a certain level. Thus a robust taxation system is already in place vis-a-vis taxation of higher brackets of income-earners.

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