{"id":154359,"date":"2021-12-17T20:53:01","date_gmt":"2021-12-17T15:23:01","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=154359"},"modified":"2021-12-17T20:53:01","modified_gmt":"2021-12-17T15:23:01","slug":"the-hidden-threat-to-our-fledging-economic-recovery","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/the-hidden-threat-to-our-fledging-economic-recovery\/","title":{"rendered":"The hidden threat to our fledging economic recovery"},"content":{"rendered":"\n

News: <\/span><\/b>World Inequality Report<\/span>\u00a0<\/span><\/i>(WIR) by World Inequality Lab has found that India has high and rising inequality.<\/span>\u00a0<\/span><\/p>\n

What are the important findings of the report?<\/span><\/b>\u00a0<\/span><\/h5>\n

The top 1% of Indians account for 22% of national income, while the bottom 50% account for only 13%. <\/span>\u00a0<\/span><\/p>\n

For more<\/span><\/b>: Read <\/span>here<\/a>\u00a0<\/strong><\/span><\/i><\/b><\/p>\n

What government official statistics say about inequality in India?<\/span><\/b>\u00a0<\/span><\/p>\n

All-India Debt and Investment Survey of the National Statistical Office (NSO)<\/strong>, found that the top 10% of urban India held 56% of all assets.<\/span> In rural India, inequality in wealth was less stark, with the top 10% reported owning 51%.<\/span>\u00a0<\/span><\/p>\n

Official data like multi-dimensional poverty data<\/a><\/strong><\/span> from the NITI Aayog or the recently released National Family Health Survey<\/a> <\/strong><\/span>data points towards widening gap across states as well as across gender, rural\/urban and caste and religion classifications.<\/span>\u00a0<\/span><\/p>\n

Why even these estimates may also be an underestimation?<\/span><\/b>\u00a0<\/span><\/h5>\n

Most of the survey fail to capture assets like jewellery, real estate and thus give an underestimation. The actual real figures may paint even a grimmer picture.<\/span>\u00a0<\/span><\/p>\n

What are the implications of growing inequality?<\/span><\/b>\u00a0<\/span><\/p>\n

Impact on India’s post-pandemic recovery<\/strong>: Currently, Investment demand is weak and though exports are doing better, but they are still not at a good level. In this scenario rising inequality will be harmful for India\u2019s economic recovery.<\/span>\u00a0<\/span><\/p>\n

Disproportionate impact of the pandemic on poor<\/strong>: <\/span><\/b>The Pandemic has devastated the lives and livelihoods of most Indians at the bottom end of the socio-economic pyramid. Large numbers, particularly those engaged in casual manual labour and in cultivation, have seen their real incomes fall.<\/span>\u00a0<\/span><\/p>\n

Private consumption has declined, causing an economic slowdown. <\/span>Falling income, high inflation, high unemployment in pandemic have led India into a vicious cycle.<\/span>\u00a0<\/span><\/p>\n

It is a cycle of low incomes leading to low demand and low employment, resulting in even lower incomes.<\/span>\u00a0<\/span><\/p>\n

What is the way forward<\/span><\/b>?<\/span><\/h5>\n

Increase in income<\/strong> required to fuel demand -The above-mentioned vicious cycle can only be broken if there is substantial increase in the incomes of India\u2019s bottom 50%. <\/span>\u00a0<\/span><\/p>\n

This will require a big hike in government expenditure<\/strong> that can generate demand and thereby employment. <\/span>\u00a0<\/span><\/p>\n

India’s economic strategy needs to be inclusive, sustainable and equitable.<\/strong><\/span>\u00a0<\/strong><\/p>\n

Source<\/span><\/b>– This post is based on the article\u00a0<\/span>\u201cThe hidden threat to our fledging economic recovery\u201d\u00a0<\/span><\/b>published in <\/b><\/span>Livemint<\/span><\/b>\u00a0on<\/span>\u00a017<\/span><\/b>th<\/span><\/b>\u00a0Dec 2021<\/span><\/b>.<\/span>\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

News: World Inequality Report\u00a0(WIR) by World Inequality Lab has found that India has high and rising inequality.\u00a0 What are the important findings of the report?\u00a0 The top 1% of Indians account for 22% of national income, while the bottom 50% account for only 13%. \u00a0 For more: Read here\u00a0 What government official statistics say about… Continue reading The hidden threat to our fledging economic recovery<\/span><\/a><\/p>\n","protected":false},"author":10328,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[216,10501],"class_list":["post-154359","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-gs-paper-3","tag-live-mint","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704795912},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/154359","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10328"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=154359"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/154359\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=154359"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=154359"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=154359"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}