| Introduction: Provide a brief note on status of inequality in India. Body: Enumerate few steps taken by government to reduce inequality. Write down few policy issues with the initiatives. Conclusion: Provide a brief way forward. |
Ans-
Article 38 and 39 of the Indian constitution provides for just and equitable society in India. Oxfam international in its global inequality report 2022, revealed that.
- More than half of new poor in the world are from India.
- 84% households have suffered loss of income during pandemic period, while 4.6 crore have fallen into poverty in India.
- The richest 142 individuals have doubled their wealth to 53 Lakh crore.
For any society to achieve social development, reduction in inequality is imperative:
- To achieve social development, inclusive growth is a must because inclusive growth ensures distribution of benefits from growth and participation of all strata of society in the process of development.
- Any social development could be sustainable only if the inequality in society is reduced to a minimum.
- Economic inequality breeds social evils like gender inequality, caste inequality, child labour and other social discrimination.
Hence, to address the inequality present in India sound and adequate policies become important. The government has taken several steps in this direction
- Progressive direct tax regime, including tax exemption unto the income of 2.5 lakhs among other measures.
- The government runs several employment generation schemes like MGNREGA, Start Up India scheme, MUDRA scheme and Skill India Mission to ensure economic upliftment of population.
- Measures like reservation in education and employment, maternity benefits and schemes like standup India to achieve gender and social equality.
- Financial Inclusion through Jan Dhan Scheme, access to credit for weaker sections to enhance economic capability.
- Support to vulnerable section of society like Old age pension, Disability allowance and widow pension.
- Education and nutrition support like Mid Day Meal scheme and ICDS to create capability among individuals to meaningfully participate in the economy and uplift themselves.
- Healthcare and sanitation measures like Swachh Bharat Mission to avoid out of pocket expenditure and loss of working days.
- To address Rural-Urban Inequality schemes for SHG formation and rural development.
However, there are policy lacunas that needs to be addressed:
- Policy formulation lacks backing of credible data which reduces the quality of policies.
- Lack of convergence of policies and coordination between centre and states for implementation of policies.
- There is leakage in the implementation system, low allocation of resources for social security and under-utilization of funds by implementing agencies.
- High proportion of indirect taxes in the economy that affect weaker section disproportionately.
- Populist measures undermining economically sound polices. Lack of long-term vision, where policies mimic electoral needs.
These issues can be addressed by use to technology for data collection to support policy making and implementation, rationalizing tax structure by reducing indirect tax and taxing high net worth individual through wealth tax or inheritance tax among other measures.
Policy formulation is the first step but implementation is equally important to ensure sustainable social development and creation of just society.
