0% found this document useful (0 votes)
134 views

Report On State of Inequality-In India Web Version

The document discusses inequality in India and provides context around key related concepts. It notes that inequality refers to an uneven distribution of resources and opportunities that create deep distinctions, while inequities are differences and disparities stemming from poor services. Inequality and inequity contribute to and intensify poverty and deprivation in India through an intergenerational cycle. The report aims to present a holistic understanding of the depth, structure, and nature of inequality in India by examining economic variables like income distribution and socio-economic variables like health, education, and household characteristics. It emphasizes the need for inclusive growth through job creation and improving women's labor force participation.

Uploaded by

azhar121zaki
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
0% found this document useful (0 votes)
134 views

Report On State of Inequality-In India Web Version

The document discusses inequality in India and provides context around key related concepts. It notes that inequality refers to an uneven distribution of resources and opportunities that create deep distinctions, while inequities are differences and disparities stemming from poor services. Inequality and inequity contribute to and intensify poverty and deprivation in India through an intergenerational cycle. The report aims to present a holistic understanding of the depth, structure, and nature of inequality in India by examining economic variables like income distribution and socio-economic variables like health, education, and household characteristics. It emphasizes the need for inclusive growth through job creation and improving women's labor force participation.

Uploaded by

azhar121zaki
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 104

1 The state of inequality in India report

THE STATE OF
INEQUALITY
IN INDIA REPORT
Authors

Dr. Amit Kapoor


Honorary Chairman, Institute for Competitiveness
Visiting Scholar and Lecturer, Stanford University

Jessica Duggal
Researcher, Institute for Competitiveness

Designed By
Content
Preface 05

Executive Summary 09

Chapter 1: Introduction 12

Part I – Economic Facets of Inequality


Chapter 2: India’s Income and Labour Profile 22

Part II – Socio-Economic Manifestations


Chapter 3: The Road to Health 38

Chapter 4: The Education Gap 60

Chapter 5: Household Characteristics 74

Chapter 6: Conclusion and


Recommendations 88

The Way Forward 92

Appendix I 93
7 The state of inequality in India report
The state of inequality in India report 8
9 The state of inequality in India report

Executive
Summary
Inequality is not simply a lack of resources state of inequality in India with in-depth
but a more profound experience of dearth coverage by examining the significant
relative to others. It is living in vulnerability variables affecting the discourse on
and deprivation with restricted means inequality, such as income profile, labour
of upward mobility. Additionally, social market dynamics, health, education
and economic facets of inequality are and household amenities. The report
mutually reinforcing. As a concept, it is will also identify and examine the vital
as moving as it is mathematical. This areas where active interventions by
has led to a vast body of academic and the Government of India and state
policy research focused on developing a governments have improved the situation
measure of inequality and understanding through the smooth delivery of social
the everyday depreciation that comes in protection and developmental schemes.
the wake of socio-economic inequities.
Poverty, on the other hand, is an absolute The State of Inequality in India Report
variable that spills over in the form of is a step in the same direction by
socio-economic inequities. Factors like an presenting a holistic understanding
increase in the rate of income deprivation of the depth, structure and nature of
undoubtedly lead to higher chances of inequality in India. The coverage of the
descent into multidimensional poverty. report includes economic variables like
income distribution and labour profile
In this background, there is an urgent and socio-economic variables like health,
need to develop a comprehensive education and household characteristics
study on the state of inequality that that attempt to give a comprehensive
can enable government, policymakers, diagnosis of developmental lacunae. It
and development professionals to is emphasised that India’s priorities lie in
find redistributive solutions to this creating more jobs with growth in order
problem. The report focuses on the to capitalise on its human resource. At the
The state of inequality in India report 10

same time, it is imperative to encourage


the Labour Force Participation Rate
(LFPR) for women, which stands at an
abysmal 30% as per PLFS 2019-20. The
Unemployment Rate is at 4.8%. However,
the unemployment rate in relation to
different levels of education is concerning
as the rate of unemployment increases
with the level of education. With a higher
rate of unemployment at the level of
diploma/certificate, graduation and
post-graduation (ranging between
19-20%), it is vital to create jobs that
correspond to a higher level of education.

In terms of health infrastructure, there


has been a concentrated effort to
strengthen the rural health infrastructure,
but nutritional deficiency remains an area
of concern. Along with nutritional poverty,
anaemia is also a significant challenge
facing the country. The government
campaigns like POSHAN Abhiyaan and
“Anaemia Mukt Bharat” are laudable
efforts, however, the crisis needs to be
addressed in a more urgent manner.
Additionally, expenditure on health is also
a cause of the descent into poverty, and
a focus on reducing the out-of-pocket
expenditure (OOPE) due to low health
coverage is required to transform the
health sector to make it more inclusive.
Finally, education – an investment that
will yield long term benefits in inequality
and poverty reduction- is a sector that
has been given attention to ensure
that poverty does not impact children’s
cognitive capacities. The focus has
also been paid to strengthening the
infrastructure of schools equipped with
proper washrooms for the students,
accessibility of safe drinking water,
11 The state of inequality in India report

electrification and other facilities making


schools infrastructurally and socially
equitable and responsive to the needs of
all its students is the basis of achieving
the goal of imparting inclusive and quality
education to all learners.

The report also highlights that while India


has made remarkable strides in improving
the overall conditions of households
ensuring proper access to necessities, and
making regions liveable by maintaining
adequate water supply and sanitation,
there are gaps that need to be addressed
so that the goals of social progress and
shared prosperity are realised.
The state of inequality in India report 12

01
Introduction
While they seem interchangeable, inequality
refers to the uneven distribution of resources and
opportunities that create deep distinctions.
Inequities, on the other hand, are the differences and
disparities that stem from poor services which are
usually remediable.

Inequality and inequity contribute and social weaving—any form of


to poverty and deprivation, disqualification from the core results
which further drives the socio- in an intergenerational cycle of
economic exclusion of certain inequality.
groups. In the Indian context,
inequalities and socio-economic Inequality is a pronounced
inequities intensify to produce experience with no uniform
a vicious cycle of poverty expression. It indicates the absence
and deprivations, requiring of equality and is symptomatic of
multidimensional frameworks to larger power structures that resist
investigate the processes at work. mobility and change. These power
The experiences of deprivations structures function in ways that
are particularly more embedded naturalise inequality and keep
in the Indian socio-economic reinforcing it through generations.
fabric due to the multi-layered Inequality is a layered phenomenon
intersectional oppression that with active variables operating
cuts across class, caste, gender and intensifying deprivations and
and religion and continues to vulnerability at each level. All critical
push certain groups towards events in global history- from wars of
complete exclusion. This exclusion independence and decolonisation
is manifested in economic, to a new economic order- had in
political and socio-cultural forms. common a fight to end inequality
Additionally, certain groups of one form or the other. Even as a
face all these forms of exclusion form of injustice in the face of the
together while being forced to the powerful exploiting the powerless,
periphery of society’s economic discourse on inequality finds its
The state of inequality in India report 14

normative place in every discipline. manifestations of inequality. Another


Scores of scholarships are dedicated pivotal aspect of approaching inequality
to finding the reasons for inequality at is measuring it. There are no benchmarks
the macro-level without accounting for or qualifying lines for inequality as there
micro-level aggressions of inequality are for poverty. Consensus has arrived
that keeps silently pushing an individual in understanding that income alone
towards more depravity. Understanding cannot be the driving factor of inequality.
the contexts of specific experiences of This in itself tells us the difficulty in
inequalities calls for an intersectional and grasping inequality in all its forms and
interdisciplinary engagement that does manifestations. Anyone can feel unequal
not operate from the point of universal in any given context; the idea, therefore,
assumptions. This also requires an active is to understand when inequality resists an
public discourse on the politicisation individual’s ability to exercise freedom and
of issues of inequalities for proactive restricts access to resources essential for a
policy-making that is comprehensive dignified living.
and acknowledges the different

The Inequality-Poverty Correlation


Poverty and inequality are mutually
reinforcing variables that spill over in the
form of socio-economic inequities. Factors
like an increase in the rate of income
deprivation undoubtedly lead to higher
chances of descent into multidimensional
poverty. Income distribution is not an
accurate measure of assessing the
degree of inequality, but as a variable,
it remains essential to our analysis as
it is an immediate trigger to increasing
socio-economic vulnerability. These
socio-economic inequalities transcend
into everyday lives in ways that restrict
mobility, limit one’s capability to make
choices and intensify their experiences of
exclusion and isolation.

A multidimensional understanding
of poverty assesses the degree of
deprivation in terms of lack of basic
15 The state of inequality in India report

necessities. These include access factor to understand consumption


to healthcare, quality education and patterns, especially of the necessities
crucial household commodities that among the population. With a high rate
improve the standard of living. The of poverty incidence, issue of accessibility
adoption of a multidimensional approach and affordability become the critical
at a global level comes after realising points on which discussions on economic
that GDP does not give a true picture of vulnerability takes place.
income disparities in a country.
Inequality is far more acute in India
Globally, Purchasing Power Parity or PPP is due to its ethnic, religious, class and
used to determine the relative purchasing caste-based differences that influence
capacity of a country’s currency over the community experiences of inequality.
same kinds of goods and services. Used These identity markers seldom operate in
as a proxy to consumption aggregates, isolation, thereby making an intersectional
the PPP is used to determine the poverty approach to inequality all the more
incidence by looking at the prices of urgent in the Indian context. Historically,
goods and services. While it may face colonisation introduced social and
criticism due to not being able to reflect economic inequality that was carried
how poor of any region experience the forward even after independence.
shifts in prices, it remains an essential
The colonial production of knowledge
(Cohn, 1996) influenced caste awareness
and performativity, which is a significant
cause of inequality in Modern India.
Chancel and Piketty1, in their study
mapping the evolution of India’s income
inequality using specialised surveys and
tax reform data from 1922 to 2015, have
asserted that India’s income inequality is
higher than its pre-independence period.
As per the estimates available in 1922,

The top 0.1% has been


found to account for
5 to 7 per cent of the
national income
1
Chancel, Lucas and Thomas Piketty (2019), “Indian Income
Inequality, 1922-2015: From British Raj to Billionaire Raj?”, The
Review of Income and Wealth, 65(1): 33-62.
The state of inequality in India report 16

They argue that socialist policies Additionally, the urban areas have
implemented immediately after registered lower poverty reduction rates
independence until the 1970s resulted than rural areas. The emphasis however,
in a reduction of top income inequality. remains on regularisation of poverty
Policies like nationalisation, progressive estimates and measurements.
taxation and strong market regulations
helped control the influence and Poverty measurement is at the core of
power of the elite. Their observations policy decisions and regimes targeted
are based on extrapolation of data at poverty eradication. Banerjee’s 3
available from the Indian Income Tax intervention in tracing the “Short and
Act. (Possibly) Unreliable History of Poverty
Measurement” reflects upon the shifting
A recent working paper of the World trends of poverty measurement.
Bank, Poverty in India Has Declined According to him, looking at India’s
over the Last Decade But Not As Much economic history, through the 1950s
As Previously Thought by Roy and Van to 1970s, a positive role by the state
der Weide highlights the importance of meant a restrictive understanding of
the need for a more robust and regular the poor as a homogeneous group
statistical exercise in India that can relying on agriculture. In this context,
offer information on the rise and decline a calorific measurement of poverty
of poverty using official figures.2 In the made the most sense since labour and
absence of the expenditure survey by productivity were tied to an individual’s
the NSSO (last released in 2011), the calorie and nutrition requirements. In the
authors look at the datasets available years before the reform era, guided by
from the Consumer Pyramid Household the Washington Consensus, the 1980s
Survey to contend that the rate of saw poverty measurement as a vision
poverty decline in India is not as it is towards social progress, even if it meant
projected. a slow growth rate. The Capability
Approach (as envisaged by Sen) and
They argue that extreme the idea of restriction of choice and
poverty in India has liberties due to poverty dominated
declined by 12.3 percentage the narrative in the 1990s- the direct
implication being that poverty
points in the period of 2011-
2019 but at a lower rate
than observed between
2004 and 2011.
2
Sutirtha Sinha Roy & Roy van der Weide (2022), “Poverty in
India Has Declined over the Last Decade But Not As Much As
Previously Thought”, Policy Research Working Paper, World Bank.

3
Banerjee, Abhijit (2017), “A Short and (Possibly) Unreliable
History of Poverty Measurement” in Abhijit Banerjee, Pranab
Bardhan et al. (eds.) Poverty and Income Distribution in India,
New Delhi: Juggernaut.
17 The state of inequality in India report

measurement should be cover multiple This, Sen argues, is the first challenge to
facets of life (including non-income-based poverty measurement in India. Second, he
variables that impact the quality of life). associates Atkinson’s welfare economics,
talking about a measurement exercise
based on utility function. The weight
Sen4 provides us with a
on a poorer person’s income should be
distinct analysis of poverty compared with the weight on the income
measurement in India. of a rich person. Above all, he emphasises
the relative measurement of inequality

01
Putting forth a case for a to understand the extent of economic
multidimensional analysis deprivation for which income alone is an
of poverty, Sen argues that insufficient variable.
poverty measurement needs
to take a radical shift from Additionally, the lens to approach
a cut-off based assessment inequality should be altered from looking
to understanding the nature at wealth concentration to income
and cause of economic distribution. For instance, the inherited
deprivations. property cannot necessarily translate
into gaining purchasing capacity or
income growth. It is particularly important

02 Further, to understand
the relationship between
poverty and inequality,
to reconsider wealth concentration
as a variable since it does not reveal
any real-time information about the
one must move ahead of consumption expenditure of goods and
a headcount measure of services. Moreover, the last robust data on
poverty. consumption expenditure was released in
2004-05, making it difficult to conclude
4
Sen, Amartya (2017), “Poverty Revisited: A Postscript”, in Abhijit Banerjee, Pranab Bardhan et al. (eds.) Poverty and Income Distribution in
India, New Delhi: Juggernaut
The state of inequality in India report 18

without gross extrapolation. Wealth of poverty in India. It is observed that


concentration includes capital stock, with the inclusion of food subsidies in the
which is a measure of capital held over poverty calculation, extreme poverty has
time rather than capital flow, which shown a declining trend (as low as 0.8% in
represents the purchasing power of any 2020-21).
household.
They argue that the Gini Coefficient (a
Bhalla, Bhasin and Virmani in Pandemic, 5
measure of real inequality) has reduced
Poverty and Inequality: Evidence from to a level near the lowest recorded – it
India claims that extreme poverty in was 0.292 in 2020-21, while the lowest
India continues to be low (lower than was recorded in 1993-94 at 0.284.
1%) in the pandemic years as it was in
pre-pandemic years due to various
social protection measures taken by the
government. They argue for a case of
fiscal interventions being included in the
poverty estimates in order to highlight the
impact of these schemes. Notably, they
argue that subsidies like food subsidies 0.292 0.284
have had a striking impact on the level 2020-21 1993-94
Box 1.1

History of Poverty Measurement in India


Poverty measurement plays a very important role in formulating different policies for
poverty reduction. It also represents how governments define poverty, its causes and
most importantly how poor are characterised. From 1950s to 1970s, poverty was linked
to low agricultural development which formed the basis of a calorie intake as a source
to determine poverty. Therefore, the poverty line was determined keeping in mind the
calories required for physical upkeep. One of the major advantages of this approach was
to raise or lower the poverty line in relation to food prices making sure that adequate
nutrition intake is guaranteed. With 1960s recognised as the time when the country was
going through a food shortage, such an approach made sure that policy making was
prioritised towards ensuring food supply.
With the growing influence of Washington Consensus and a gradual shift away from
Agriculture, the 1980s marked understanding poverty measurement in respect to growth
and factors required for achieving growth like education and focus on redistribution. By
1990s, the dissatisfaction with income and consumption-based grew to form a discourse
on capability development and multidimensional approach to understanding poverty.
This coincided with the development of Human Development Index combining income,
health and education measures. From this developed the Multidimensional Poverty Index
in 2010 released by the Oxford Poverty and Human Development Initiative.

5
Bhalla, Surjit, Karan Bhasin and Arvind Virmani (2022), “Pandemic, Poverty and Inequality: Evidence from India“ (Working Paper of IMF)
19 The state of inequality in India report

A Solution in Social Protection?

The number of poor in a country While there has been a slight decline
symbolises how far a country is in in expenditure on social services in
achieving its social progress and growth education (from 10.8% to 9.7%),
goals. As an approach toward ensuring
welfare for the most vulnerable population
and as a corrective measure to social and
economic inequities present in society,
social protection schemes act as a
mechanism to increase the resilience of 10.8% 9.7%
marginalised people to socio-economic
shocks. In a world where any volatile
situation can push a massive section of there has been a consistent rise in health
the society into poverty, social protection from 4.5% to 6.6%.
schemes should be emphasised. The
government should consistently allocate
resources to ensure universal coverage
of these social protection nets. Social
protection schemes also lead to a greater 4.5% 6.6%
degree of socio-economic inclusion and
integrative growth. While welfare schemes
(benefit transfers, cash/in-kind transfers) India’s robust and multidimensional social
might not immediately reduce poverty protection system has been an inspiration
incidence, they offer a cushioning effect to the world at large. These schemes
against radical socio-economic changes. are rooted in welfarism that focuses on
making essential services affordable skill
India’s expenditure on social services enhancement, opportunity creation, and
has increased over the years from 6.2% in sustainable living, ensuring a universal
2014-15 to 26.6% in 2021-22 (as per Budget increase in the standard of living. (See
Estimates). Appendix I for Table 1.1)

6.2% 26.6%
2014-15 2021-22
The state of inequality in India report 20

Structure of the Report


The report attempts to give a It is pertinent to our goal
comprehensive overview of the state of to reduce inequality and
inequality in the country by looking at the eradicate poverty that
broad coverage of indicators like income the distribution of wealth,
profile, labour market dynamics, health, income and resources are
education and household amenities. balanced out in a manner
These indicators have been identified that can combat socio-
to develop multidimensional analyses economic triggers to
based on the idea of accessibility and descent into poverty.
affordability as the determinants of
realising the extent of inequities and Chapter

02
poverty in India. The report will identify on the Road to Health seeks
and analyse the key areas where active to present a case on the
interventions by the Government of state of India’s health system
India and state governments have by focusing on the country’s
improved the situation by facilitating the physical infrastructure and
smooth delivery of social protection and nutritional profile as well as
developmental schemes. the average expenditure
incurred on basic facilities
Chapter to ascertain how accessible

01
on India’s income and the healthcare system in the
labour profile focuses country is.
on outlining income
concentration and disparity Chapter

03
to understand the country’s on the Education Gap
wealth concentration. This focuses on the physical
chapter seeks to outline an infrastructural investments
income as well as labour and how that has led
profile of the country by to positive outcomes
relying on the PLFS data to like low drop-out rate,
depict the trends in growth high enrolment rate and
or fall of incomes across the educational empowerment
top and bottom percentiles of learners across social
and the average earnings of categories. Development
the worker population along in the educational sector
with understanding the leads to social progress
composition and dynamics embedded in structural
of the Indian labour market. solutions to the inequality
problem.
21 The state of inequality in India report

Chapter This gives a clear picture of how

04
on Household interventions at household level leads
Characteristics This chapter to a raised standard and quality of
looks at analysing the living. These indicators – ranging from
household profile by looking economic variables to socio-economic
at indicators like wealth helps us establish the inter-relatedness of
concentration, sanitation experiences of inequalities that present
and water availability, themselves in dilemmas between day-
access to electricity, iodised today choices of basic survival.
salt and cooking fuel. These
Bare Necessities comprising of housing, water, sanitation,
together also form a basis of
6

electricity and clean cooking fuel, are important for leading a


bare necessities6 as defined descent life. To this respect, a Bare Necessities Index (BNI) is created
at the rural, urban and India level in 2012 and 2018 using NSO rounds
in the Economic Survey of of 69th and 76th on drinking water, sanitation, hygine and housing
conditions. (Economic Survey 2021-22, 2022).
2021-227. 7
Economic Survey 2021-22 https://www.indiabudget.gov.in/
economicsurvey/doc/echapter.pdf (Accessed on 25th March, 2022).
The state of inequality in India report 22

Part I
Economic
Facets of
Inequality

02
23 The state of inequality in India report

India’s Income
and Labour
Profile
Inequities in the labour market like lack of secure
jobs, increasing informalisation, gender-based
profiling or restriction in moving from ascribed
identities often translate into vulnerability and
deprivation in everyday life.

Low incomes earned out of and profiles becomes important


these limited jobs further pushes for all these reasons and mapping
people toward poverty. Income how economic disempowerment
has never been a complete manifests into social exclusion.
meter of growth or capability Moreover, structural changes in the
development in a country. labour market like the expansion of
However, it is an essential part labour force participation, increasing
of any discussions surrounding emphasis on skill and vocational
poverty and inequality as income training and increasing rate of
levels shape accessibility and enrolment in education have led to
inaccessibility to basic necessities some positive changes in improving
for everyday existence. It shapes the overall status of the Indian labour
the structures of the society in market.
ways that combine economic
and social deprivations and With a vast concentration of
aggravate difficulties. It breaks incomes and wealth at the top
down resilience of economically driving the forces of inequality, the
weaker sections to catastrophic solution lies in redistributive measures
events thereby exposing them and building economic resilience
to poverty and deprivation. among the poorest of households
Understanding income levels through social protection schemes.
The state of inequality in India report 24

As per PLFS 2019-20, a monthly salary of minimum Rs 25,000 (Rs 300,000 yearly) is
amongst the top 10% of the total wages earned.

25000 is amongst Top 10% of Total Wages


( Rs 300,000 yearly) earned
the

If an amount like this comes in the top This chapter seeks to outline an income
10 percentile, then the bottom-most as well as labour profile of the country
condition cannot be imagined. Therefore, by relying on the PLFS data to depict
the target should be to incentivise those the trends in growth or fall of incomes
on the bottom in a way that increases their across the top and bottom percentiles
disposable income. Consequently, they and the average earnings of the worker
will be able to access and afford a quality population along with understanding the
life by focussing on health, education, and composition and dynamics of the Indian
household empowerment. For integrative labour market. It is pertinent to our goal to
growth, the benefits of growth should be reduce inequality and eradicate poverty
equitably distributed as well. that the distribution of wealth, income and
resources are balanced out in a manner
in which we are able to combat socio-
economic triggers to descent into poverty.
25 The state of inequality in India report

How much does India earn8?

India’s income profile is outlined by a 2019-20, the top 1% registered a marginal


growing disparity between those who lie fall, with their share in the total salaried
on the top end of the earning pyramid
and those on the bottom, highlighting the Top 1% Earns ~6-7% of
failure of the trickle-down approach to total income
economic growth.

According to the Annual Report of the


Periodic Labour Force Survey (PLFS) 2019-
20, the annual cumulative wages came to
be around Rs 18,69,91,00,000, out of which 6.14% 6.84% 6.82%
the top 1% earned nearly Rs 1,27,48,00,000, 2017-18 2018-19 2019-20
and the bottom 10% accounted for Rs
32,10,00,000 indicating that the top incomes in the country holding 6.82%.
1% earns almost thrice as much as the The growth rate from 2017-18 to 2019-
bottom 10%. 20 can be seen at 0.96%. Similarly, the
top 10% earn more than 30% of the total
income. However, a marginally downward
trend can be observed from holding
~3x 35.18% in 2017-18 to 32.77% in 2018-19 and
32.52% in 2019-20. At the same time, this
Rs. 32,10,00,000 Rs. 1,27,48,00,000 marginal loss in percentage points has
Bottom 10% Top 1% Earners not resulted in the increased salaries of
Earners
the bottom-most population.

Top 10% Earns ~30-35% of


This trend is not unique to the year 2019-
20. In fact, in 2017-18, from the total
total income
approximate earning of Rs 17,84,00,00,000
the top 1% earned about Rs 1,10,42,00,000
while the bottom 10% accounted for close
to Rs 32,41,00,000 resulting to the top 1%
earning more than thrice as much as the
bottom 10%. 35.18% 32.77% 32.52%
2017-18 2018-19 2019-20
Across three survey rounds (2017-18, 2018-
19 and 2019-20), the share of the top 1%
in the total income has only increased –
from 6.14% in 2017-18 to 6.84% in 2018-19. In

8
The data has been taken from PLFS 2017-18, 2018-19 and 2019-20.
Negative (or 0) incomes have not been used in the calculations.
The state of inequality in India report 26

The bottom 50% held approximately 22% 1% grew by almost 15% between 2017-
across the three time periods. The growth 18 to 2019-20, whereas the bottom 10%
rate of the bottom 50% has been at 3.9% registered a close to 1% fall. The 2018-19
from 2017-18 to 2019-20, while the top year has observed a fall of almost 7%
10% has grown by 8.1%. This highlights the among the total salaried incomes in the
disparity between the income groups bottom 10% and an approximately 2% fall
and the disproportionate rate of growth in the bottom 50%.
among these tiers. Additionally, the top

Top 1 Top 10 Bottom 50 Bottom 10


7000.00M

6000.00M

5000.00M

4000.00M

3000.00M

2000.00M

1000.00M

0.00M
2019-20

2019-20

2019-20

2019-20
2017-18
2018-19

2017-18
2018-19

2017-18
2018-19

2017-18
2018-19

Income Category

Fig. 2.1 The graph above represents the trends across the three years pertaining to changes in
the cumulative annual income of Top 1%, Top 10%, Bottom 50% and Bottom 10%. (Source: PLFS9
2017-18, 2018-19, 2019-20

Understanding the Income Profiles10

The wage earners can be classified into as self-employed and 34.38% as regular
regular salaried, self-employed and salaried. The same income profile is
casual workers according to the nature observed in 2019-20 as well, with 20.71%
of employment. In 2018-19, out of a as casual, 45.78% as self-employed and
sample of about 125470 workers, nearly 33.50% as regular salaried. In 2019-20,
20.6% accounted for casual workers, 45% around 123988 workers were sampled. In

9
Sample Estimates taken from PLFS 2017-18, 2018-19 and 2019-20)
10
The data has been taken from PLFS 2018-19 and 2019-20. Negative (or 0) incomes have not been used in the calculations.
27 The state of inequality in India report

terms of workforce share, nearly 15% of the entire workforce earns less than Rs 50,000
(less than Rs 5,000 a month) in both years, exacerbating the experiences of poverty
and economic inequality. The PLFS data (in all the years) reported negative and zero
incomes, indicating that several households have no disposable income or their debts
and borrowings exceed their earnings.

Regular Regular
Workers Workers
34.38% Casual 33.50% Casual
Workers Workers
20.62% 20.71%

Self-Employed Self-Employed
Workers Workers
45% 45.78%

Fig. 2.2 and 2.3 represents the share of the three employment categories in the annual wages of
the years 2018-19 and 2019-20 (Source: PLFS 2018-19, 2019-20 and author’s calculation)

Male Female Total

Rural Urban Rural Urban


400

350

300

250

200

150

100

50

0
2018-19 2018-19 2019-20 2019-20

Fig.2.4 The graph represents the average gross earnings (monthly) of casual labour category of
workers over the sector (rural, urban) and gender across two years. (Source: PLFS 2018-19,
The state of inequality in India report 28

Male Female Total

Rural Urban Rural Urban

20,000

15,000

10,000

5000

0
2018-19 2018-19 2019-20 2019-20

Fig.2.5 The graph represents the average gross earnings (monthly) of regular salaried labour
category of workers over the sector (rural, urban) and gender across two years. (Source: PLFS
2018-19, 2019-20)

Male Female Total

Rural Urban Rural Urban


16,000

14,000

12,000

10,000

8000

6000

4000

2000

0
2018-19 2018-19 2019-20 2019-20

Fig. 2.6 The graph represents the average gross earnings (monthly) of self-employed labour
category of workers over the sector (rural, urban) and gender across two years. (Source: PLFS
2018-19, 2019-20)
29 The state of inequality in India report

The average monthly salary of regular an average of Rs 268 ( Rs 297 for male
salaried/wage earners in July- workers and Rs 185 for female workers)
September 2019 amounted to Rs 13912 in rural India. Rs 356 were earned on
for rural males and Rs 19194 for urban average in urban areas, with Rs 311
males. Employed females in rural parts for males and Rs 190 for females. This,
earned Rs 12090 in the same period however, is an increase from the average
while females in urban India earned an wages earned for the same period in
average Rs 15031. For the self-employed 2018-19 (July-September 2018), with
workforce, the average earnings were Rs the average income earned by regular
9661 for males and Rs 4558 for females salaried individuals coming to Rs 15,598
in rural India. In the urban region, the per month (In 2019, for July-September,
average salaries for July-September it was Rs 16,418). Similarly, for casual
2019 period came to be Rs 17166 for workers, the average salary was Rs
males, and females earned an average 264, while it was Rs 282 in 2019. And
of Rs 7141. Casual workers employed in the average monthly income for self-
works other than public works earned employed workers was Rs 9,945, which
increased to Rs 10,538 in 2019.

2019-20

Categories Number of workers Number of workers Number of workers


(Regular salaried) (casual workers) (self-employed)

Less than 5,000 21.62% 1.80% 76.58%

5,000 - 10,000 14.33% 13.12% 72.55%

10,000 - 15,000 13.86% 14.86% 71.29%

15,000 - 20,000 15.03% 20.11% 64.85%

20,000 - 50,000 19.35% 31.40% 49.26%

50,000 - 1,00,000 26.40% 28.23% 45.37%

More than 41.59% 14.41% 43.99%


1,00,000

Table 2.1 The table above shows the percentage share of types of workers in different (annual)
income categories. (Source: PLFS 2019-20 and author’s calculations)

Under the less than 5,000 category, the earnings increased, whereas the share
number of self-employed workers has of self-employed decreased. The casual
highest share and casual workers the workers had their highest share under the
lowest. The share of regular salaried 20,000-50,000 bracket of income and
workers increase as the amount of low for less than 5,000 and more than
1,00,000.
11
The LFPR (according to the usual status ps+ss) is taken for the
15+ age group.
The state of inequality in India report 30

Explaining the Labour Force Participation Rate (LFPR)

It is essential to create more well-paying their integration, equitable development


jobs in the formal sector to utilise India’s remains a far-away goal. Inequalities
demographic dividend, which will further in the labour market in terms of lower
boost the country’s economic growth. jobs or people not being able to get
The LFPR is a measure to examine the jobs translates into economic inequities
working-age population in a country halting socio-economic mobility for some
by looking at the section of people households altogether. In this respect, to
who are currently employed or seeking meet the aspirations and needs of those
employment. A greater participation rate entering the labour force or seeking to
would lead to expansion of the working enter, well-paying and safe jobs need
population and that those seeking to be created with an emphasis on skill
employment can find jobs with respect to growth.
their education level.
An equally important dimension of
According to the annual reports of understanding the LFPR is the ratio of
PLFS – since 2017-18, the labour force male to female rate of participation in
participation rates have registered an the labour force. While there has been a
upward growth in percentage points. slight increase in the female participation
From 49.8% in 2017-18, it is 53.5% in 2019- rate over the years, it still continues to be
20. In 2018-19 the LFPR was 50.2. extremely low in comparison to the male
participation rate. A low female labour
Labour Force force participation rate continues to be a
Participation Rate significant problem in creating an equal
labour market as it continues to exclude
almost half of the working population,
making it difficult to reap and distribute
the benefits of a high working-age
population.
49.8% 50.2% 53.5%
2017-18 2018-19 2019-20 Female Labour Force
Participation Rate

This implies that there have been positive


structural changes leading to improved
participation rates in the course of the
last three years. At the same time, it is
important to note that nearly fifty per
cent of the working population is still 23.3% 24.5% 30%
outside the labour market, and without 2017-18 2018-19 2019-20
31 The state of inequality in India report

The real dilemma arises as female By the level of education, LFPR for 15
participation rate continue to be lower years and above for the educated
than the male labour force participation workforce (secondary and above)
rate despite of the targeted efforts to stood at 48.8% in 2017-18 and 2018-19.
empower women in the labour market. In 2019-20 this increased to 51.5%. Over
In 2017-18 the female LFPR11 was 23.3%, the three years, the participation rate
increasing to 24.5% in 2018-19 to 30% was significantly low for the population
in 2019-20. In contrast, the male LFPR educated till higher secondary, ranging
continues to account for more than 70% between (approx.) 40% to 43% only.
of the total labour force participation
rate (75.8% in 2017-18, 75.5% in 2018-19 The maximum concentration was
and 76.8% in 2019-20). amongst those with diploma/certificate
courses with over 70% participation
Male Labour Force rate in all three years, indicating the
Participation Rate popularity of skill enhancement courses
among the working population. In high-
income states like Maharashtra, Gujarat
and Karnataka, the LFPR has been
between 50%-55%, while Chhattisgarh
has had the highest participation rate
ranging between 65%-66%. Being one
75.8% 75.5% 76.8% of the most deprived states, a high
2017-18 2018-19 2019-20 overall LFPR in Chhattisgarh indicates
the need for the working population to
be engaged in economic activities for
The disparity continues at the level of sustenance. Additionally, the floating
urban and rural as well, with the male population is not included in the survey
participation rate in 2017-18 being 76.4% set.
and 24.6% for females in rural India.
However, the total LFPR for rural is higher
than the urban regions over the three
years. In 2017-18, rural LFPR remained at
50.7% and urban at 47.6%. By 2019-20,
the rural LFPR increased to 55.5% and
the urban LFPR to 49.3%. This could be
a direct result of economic activities in
rural parts being more labour-intensive.
Conversely, the extent of poverty and the
need to earn varies between rural and
urban parts, thereby directly impacting
the slightly higher rural LFPR.
The state of inequality in India report 32

Rural Urban LFPR (%)

30.00%

35.00%

25.00%
LFPR (%)

20.00%

15.00%

10.00%

5.00%

0.00%
2017-18 2018-19 2019-20

Fig. 2.7 The graph represents the labour force participation in sectors (rural, urban) over the three
years (Source: PLFS 2017-18, 2018-19, 2019-20)

Female Male LFPR (%)


40.00%

80.00%
30.00%

50.00%

60.00%
20.00%

70.00%
10.00%
0.00%
2019-20
2018-19
2017-18

Fig. 2.8 The graph represents the share of each gender’s labour force participation rate over the
three years (Source: PLFS 2017-18, 2018-19, 2019-20)
33 The state of inequality in India report

Rural Urban Rural Urban


Female Female Male Male

80.00%

70.00%

60.00%

50.00%
LFPR (%)

40.00%

30.00%

20.00%

10.00%

0.00%
2017-18 2018-19 2019-20

Fig. 2.9 The graph represents the share of the male and female population labour force
participation in different sectors (rural, urban) over the three years (Source: PLFS 2017-18, 2018-19,
2019-20)
The state of inequality in India report 34

Unemployment Profile

The employment and unemployment fully, there is a need for enhancing


status in a given period is ascertained by economic progress through job creation.
looking at the rate of Worker Population The country’s Unemployment Rate (UR)
Ratio (WPR) and the Unemployment in 2019-20 is 4.8%. This has fallen from
Rate (UR). WPR can be defined as the 6% in 2017-18. Over the three years, the
percentage of employed persons in the state of Nagaland has reported the
population, and the Unemployment highest unemployment rate despite
Rate is measured as the percentage of a substantial dip in 2018. The UR of
persons unemployed among the persons Nagaland went from 21.4% in 2017-18
in the labour force. to 17.4% in 2018-19. However, by 2019-20
the UR rate increased to 25.7%. Among
In 2017-18, WPR (for 15 years and above) Union Territories, Lakshadweep has
was 46.8%, increasing to 50.9% by 2019- registered the highest unemployment
20. While the marginal increase is a step rate reaching 31% in 2018-19 (the highest
in the right direction, it still indicates that in the country for that year).
to exploit the demographic dividend

Rural Urban Total

60.00%

50.00%

40.00%
Rate of WPR (%)

30.00%

20.00%

10.00%

0.00%
2017-18 2018-19 2019-20

Fig. 2.10 The graph represents the rate of Worker Population Ratio (WPR) of different sectors (rural,
urban) over the three years (Source: PLFS 2017-18, 2018-19, 2019-20)
35 The state of inequality in India report

Female Male
Rate of WPR (%)
2019-20
2018-19
2017-18

0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00%

Fig. 2.11 The graph represents the rate of WPR for males and females over three years (Source:
PLFS 2017-18, 2018-19, 2019-20)

The unemployment rate based unemployment rate stems from their


on education level reveals to us a lower participation in the labour market
concerning picture of the increasing as women are seen as the ‘secondary
rate of unemployment as the levels earner’ and not the primary earner. The
of education increase. The lowest added home responsibility discourages
concentration (as low as 0.6% in 2019- women, reducing their probability to
20) of unemployment is among the engage in economic activities. Moreover,
non-literate population. The highest the lower unemployment rate among
concentration is among people with a rural women compared to urban women
diploma/certificate course, graduation is due to more participation of the former
and post-graduate and above, in the labour market. The rural-urban
stretching between 19%-20% in every variations do not necessarily translate
slab. This implies that there is a dire into women’s empowerment in rural areas
need to create more jobs corresponding as women mostly enter the labour market
to higher education levels. Further, this due to economic pressures.
incentivises pursuing higher education
and attracts the working population to
the labour market. Additionally, the male
unemployment rate in 2019-20 was 5%
and for females was 4.2%. A lower female
The state of inequality in India report 36

Rural Urban All India


2017-18
2018-19
2019-20

0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0%

Unemplyment Rate (%)

Fig. 2.12 The graph represents the unemployment rate in rural, urban and all India level over three
years (Source: PLFS 2017-18, 2018-19, 2019-20)

Female male

7.0%

6.0%

5.0%
Unemplyment Rate (%)

4.0%

3.0%

2.0%

1.0%

0.0%
2019-20 2018-19 2017-18
Fig. 2.13 The graph represents the unemployment rate for male and female over three years
(Source: PLFS 2017-18, 2018-19, 2019-20)
37 The state of inequality in India report

Insights

These numbers have thrown light on the fact


that while growth has taken place in terms of
an increase in wages earned, the benefits of
that growth have been concentrated and
has marginalised the poor further, thereby
making them more deprived. The mobility
in income slabs is difficult to trace due to
the absence of income and class-based
economic slabs, however, it is easy to
discern that the gap between the
highest wage earners and the
lowest wage earners is enormous
and only increasing. The wage
trends have also presented the
case that accelerated growth
among the few, which has
excluded the majority at the
bottom altogether, has led
to uneven development and
restricted upward socio-
economic mobility. While
income disparity is not the only
trigger to descent into poverty,
it boldly outlines the everyday
experiences of inequality and
inequities. Basic needs become
luxuries, thereby impacting the
country’s entire social fabric.
Additionally, the income profiles
have also shown the vast pay
gap between men and women,
calling attention to gender-
based inequities in the labour
market that further marginalise
women and reduce their labour
force participation rate.
The state of inequality in India report 38

Part II
Socio-Economic
Manifestations

03
39 The state of inequality in India report

The Road
to Health
Achieving universal access to healthcare is an arduous
task but one that is essential for building resilient social
infrastructure and a progressive society.

The last two years of the Covid-19 like discrimination, stereotyping,


pandemic have reflected the and exclusion that determine the
importance of a robust healthcare distribution of resources and impact
infrastructure that accentuates the capabilities of individuals
health equity in the country. The or communities is an important
goal of health equity stems from challenge to achieving this goal.
realising health as a fundamental
human right and that every Expenditures incurred on health
individual, regardless of their socio- issues is one of the major factor that
economic and cultural contexts, is leads to a descent into poverty. In
able to lead a healthy life. Being India, 13% of the Monthly Per Capita
the third goal among the list of Expenditure (MPCE) is directed
Sustainable Development Goals, towards out-of-pocket health
establishing mechanisms for “good expenditures as of 202013. While this
health and well being” is considered is a huge improvement from the
to be an important target for overall 54.78% in 2019, it still falls short of the
well-being across all age groups targeted goal of 7.8%13, indicating the
and all sections of society. gaps in universal health coverage.
Health inequality in India emerges
The idea of good health and well- from a lack of infrastructure and
being rests on determinants like economic disempowerment of
healthcare infrastructure, health a large population that tends to
coverage, access to healthcare require healthcare mechanisms
delivery mechanisms, achieving the most. While the rural and
nutritional needs, immunisation urban gap has been reduced in
and sanitation. Additionally, terms of infrastructure, access and
resisting structural inhibitors to technology, economic scarcity
complete access to healthcare influences consumption patterns
12
“SDG India Index and Dashboard 2020-21” https://
sdgindiaindex.niti.gov.in/#/ranking (accessed on 27th
March, 2022).
13
Ibid.
The state of inequality in India report 40

where healthcare becomes a luxury. This on the country’s physical infrastructure


chapter will seek to present a case on the and nutritional profile to ascertain the
state of India’s health system by focusing extent of inequities in the sector.

India’s Health Infrastructure

With the onset of the Covid-19 pandemic, As per Rural Health Statistics 2019-20,
the problems with the overall health as of March 2020, there are 155404
infrastructure in terms of capacity, Sub Centres (SC), 24918 Primary Health
machinery and workforce became Centres (PHC), and 5183 Community
more apparent. Therefore, most of the Health Centres (CHC) in rural India14.
developments in strengthening the In comparison, there were 146026 SCs,
country’s health infrastructure have been 23236 PHCs and 3346 CHCs in 2005.
done to respond to the health crisis and
ensure that these changes are long-term The Sub Centres are the first point of
and bring about health equity among contact between primary health care
all social categories long after the and the community. Each Sub Centre is
pandemic. Under the ambit of Ayushman headed by one Auxiliary Nurse Midwife
Bharat, the goal is to achieving universal (ANM) or one female health worker and
health coverage by providing care one male health worker. The centres
through Health Wellness Centres (AB- are entrusted with providing maternal
HWC) covering child and maternal health and child care along with providing
services, non-communicable diseases immunisation services and bringing
and free drugs and diagnostic services. about behavioural changes through
disseminating information on nutritional
requirements and family welfare.
2005 2019-20
While states like Rajasthan (+ 2698),
146026 155404
Gujarat (+1888) and Chhattisgarh (+1387)
Sub Centres (SC) have reported a significant increase in the
number of SCs built since 2005

23236 24918
Primary Health Centres (PHC)

Sub Centres (SC)


3346 5183
+2698
Community Health Centres (CHC) Rajasthan

Rural Health Statistics 2019-20 https://hmis.nhp.gov.in/


14

downloadfile?filepath=publications/Rural-Health-Statistics/
RHS%202019-20.pdf (Accessed on 20th March 2022)
41 The state of inequality in India report

indicating that there is less number of


sub-centres than required, thereby putting
Sub Centres (SC) pressure on the existing units. Bihar has a
+1888 58% shortfall with 9112 Sub Centers in place
Gujarat while the requirement is 21634 centres.
Similarly, in Delhi, there is a 59% shortfall
with only 12 existing centres when the
need is 29 centres.

Sub Centres (SC)


+1387
Chhattisgarh
Sub Centres (SC)
58% Shortfall
Bihar (-1225), Andhra Pradesh (-5085),
Bihar Required
and Assam (-450) are some of the states 21634
with a shortfall in the number of SCs. Existing centres
9112

Sub Centres (SC)


-1225 Sub Centres (SC)
Bihar 59% Shortfall
Delhi Required
29
Existing centres
Sub Centres (SC)
-5085 12
Andhra Pradesh
Likewise, Rajasthan (+381), Gujarat (+407),
Chhattisgarh (+275) and Jammu & Kashmir
(+589) have reported an increase in the
number of Primary Health Centres (PHC)
Sub Centres (SC) from 2005. The Primary Health Centres are
-450 the first contact point between the village
Assam and medical officer and are established
by State Governments under the Minimum
Bihar and Delhi also have the highest Needs Programme (MNP)15/Basix Minimum
percentage rate of shortfall in SCs, Services Programme (BMS).

Minimum Needs Programme (MNP) was introduced during the fifth five year plan with the aim to provide basic minimum needs that are
15

essential for improving living standards of people and promote equality by making sure poorest households have access to basic needs –
health, water, elementary education, electricity, nutrition and housing.
The state of inequality in India report 42

highest percentage rate of shortfall of


PHCs in 2020 as well. Uttar Pradesh has
Primary Health a 51% shortfall rate, and West Bengal has
Centres (PHC) a 58%. With a 73% shortfall, Jharkhand

Rajasthan +381 has only 291 PHCs, while as many as 1091


are required pointing toward the extreme
over-burden on the primary health care
system in rural India.

Primary Health
Centres (PHC)
Gujarat +407 Primary Health
Centres (PHC)
Uttar Pradesh
-780

Primary Health
Centres (PHC)
Chhattisgarh +275 Primary Health
Centres (PHC)
West Bengal -260

Primary Health
Centres (PHC) Primary Health
Jammu & +589 Centres (PHC)
Kashmir Andhra -428
Pradesh

The Primary Health Centres are the first


contact point between the village and
medical officer and are established by
State Governments under the Minimum Primary Health
Needs Programme (MNP) /Basic Minimum Centres (PHC)
Services Programme (BMS). Jharkhand -270

The states of Uttar Pradesh (-780), West


Bengal (-260), Andhra Pradesh (-428)
and Jharkhand (-270) account for the
highest difference rate in PHCs from 2005.
Moreover, these states have recorded the
43 The state of inequality in India report

Community Health Centres (CHCs), like 2005. In contrast, Andhra Pradesh (-23),
SCs and PHCs, form an integral part of the Karnataka (-65) and Maharashtra (-104)
primary health care infrastructure and must have recorded a downfall. The shortfall
be operated by four medical specialists percentage has been the highest in Bihar
– surgeon, physician, paediatrician (94%), Andhra Pradesh (52%) and Karnataka
and obstetrician-gynaecologist with (43%). It is interesting to note that in terms
paramedical support staff. As a referral of the above mentioned infrastructural
centre for four PHCs, a Community Health components of the primary health care
Centre has around 30 indoor beds, a structure, Andhra Pradesh has recorded
labour room, an OT, and basic diagnostic a downfall in all three centres pointing
(like X-Ray) and laboratory facilities. towards a possibility of over-burdened
healthcare units leading to less interaction
Uttar Pradesh(+325), Tamil Nadu (+350) with the community, inadequate medical
and Rajasthan (+222) have observed a attention to the patients and thinly
rise in the number of CHCs from the year stretched medical facilities.

2005 2020
25000

20000

15000

10000

5000

0
Arunachal Pradesh
Chandigarh
Goa
Gujarat
Haryana
Himachal Pradesh
Karnataka
Kerala
Madhya Pradesh
Maharashtra
Manipur
Meghalaya
Nagaland
Odisha
Punjab
Rajasthan
Tamil Nadu
Telangana
Tripura
Uttarakhand
Andaman & Nicobar Islands
Dadar & Nagar Haveli and Daman & Diu
Jammu & Kashmir
Ladakh
Andhra Pradesh
Assam
Bihar
Jharkhand
Mizoram
Sikkim
Uttar Pradesh
West Bengal
Chhattisgarh
Delhi
Lakshadweep
Puducherry

Fig. 3.1 The graph shows the number of total health centres* in all states and UTs in 2005 and 2020
(Source: Rural Health Statistics 2019-20) (* Health Centres include Sub-centres (SCs), Primary
Health Centres (PHCs) and Community Health Centres (CHCs)
The state of inequality in India report 44

CHCs PHCs Sub Centre

Shortfall %

250

200

150

100

50

0
Andhra Pradesh

Assam

Bihar

Chhattisgarh

Madhya Pradesh

Maharashtra

Odisha

Delhi
Haryana

Jharkhand

Karnataka

Telangana

Tripura

Uttar Pradesh

Uttarakhand

West Bengal

Puducherry
Nagaland

Sikkim
Meghalaya

Punjab

Jammu & Kashmir


Manipur

Fig. 3.2 The graph shows the states with a percentage of shortfall in the number of Sub-centres
(SCs), Primary Health Centres (PHCs) and Community Health Centres (CHCs) in the rural areas.
(Source: Rural Health Statistics 2019-20)

Making healthcare accessible also hospitals. In urban parts, expenditure at a


requires it to be affordable. Taking from government hospital comes to be nearly
the findings of the National Sample Rs 4400 and around Rs 38,000 in private
Survey (NSS) – 75th round: “Household hospitals.
Social Consumption in India: Household”16,
one can look at the average medical
expenditure per case of hospitalisation
(including all expenses incurred during the
stay in the hospital).

Excluding childbirth, the average


expenditure in rural regions comes to be
around Rs 4,290 in a government hospital
and more than Rs 27,000 in private
45 The state of inequality in India report

Rural region expenditure Expenditure on treatment of cancer

Government Hospital
Rural & Urban both
Government Hospital
Rs. 4,290
Rs. 61,216
Private Hospital
Private Hospital
Rs. 93,000
Rs. 27,000

Expenditure on Delivery
Urban region expenditure
Rural & Urban both
Government Hospital
Government Hospital
Rs. 2,916
Rs. 4,400
Rural only
Government Hospital
Private Hospital Rs. 2,770
Rs. 38,000
Urban only
Government Hospital

This is more than the combined income of


Rs. 3,385
many households in rural and urban India.
It becomes more severe with specific
ailments- for instance, the average In India, astronomically high medical
expenditure per hospitalisation for the bills are one of the significant reasons
treatment of cancers comes to be around households descend into poverty or
Rs 61,216. In private hospitals, for the same suffer a major hit in their savings and
disease, the expense shoots up to around other expenses. While the Out of Pocket
Rs 93,000. The average Out-of-Pocket Expenditure (OOPE) has come down to
expenditure per delivery in a public 13% of MPCE, it is still too expensive for
facility came to be Rs 2916 (rural and a lot of households to choose medicare
urban combined). The spending is higher over other household expenditures. Low
in urban areas, with the average coming coverage of financing schemes is one
to be around Rs 3385. In comparison, it of the reasons why OOPE continues
is Rs 2770 in rural areas17. Such increased to be high. Previous trends of reduced
spending on public facilities is one of the investment in the health sector and low
reasons why only 61.9% of institutional financial protection for adverse health
births happen in public facilities. conditions also contribute to the rising
Additionally, only 52.6% of births in urban health inequities. 19
parts occur in public facilities.18

16
The findings from NSS 75th Round are present in the Health and Family Welfare Statistics in India 2019-20. https://main.mohfw.gov.in/
sites/default/files/HealthandFamilyWelfarestatisticsinIndia201920.pdf (Accessed on 18th March 2022).
17
NFHS -5 2019-21.
18
Ibid.
The state of inequality in India report 46

85.9% of people from rural parts are not As much as 83.7% of rural household
covered under any health scheme, and income and savings, among the lowest
80% in urban cities. In terms of sources of 1st quintile class based on household
financing, household income and savings expenditure, are directed towards
remain the primary source, followed by health expenditure at hospitalisation. In
borrowings and other sources, including urban, for the lowest 1st quintile, 80.3% of
selling assets and borrowing from family or household savings and income is used to
relatives. finance hospital expenses.
Box 3.1

Antenatal Healthcare Mechanisms


With regard to maternal and child health care, improvements have been made in both
accessibility and the presence of infrastructure for antenatal and postnatal care. 70%
of women have been reported to have had an antenatal check-up in the first trimester,
which is an increase from 58.6% in 2015-16 (NFHS 4). Similarly, at least 58.1% of mothers
have had at least four antenatal care visits during their pregnancy. 78% of women
received postnatal care from a doctor or auxiliary nurse within two days of delivery,
and 79.1% of children received postnatal care within two days of delivery. Institutional
births have also increased from 78.9% to 88.6% (86.7% of institutional births in rural India).
Likewise, 61.9% of institutional births happened in a public facility. There has been a
consistent rise in these indicators from NFHS-4; however, safe antenatal and postnatal
caregiving practices depend on both behavioural changes influenced by awareness
generation and infrastructural development.

It is a direct result of targeted efforts in the health sector. There have been constant
improvements in demographic indicators like Infant Mortality Rate, Under Five Mortality
Rate and Neo-Natal Mortality Rate.

Indicator NFHS – 5 (2019-21) NFHS – 4 (2015-16)


Infant Mortality Rate (per 1000 live births) 35.2 40.7
Under Five Mortality Rate (per 1000 live births) 41.9 49.7
Neo-Natal Mortality Rate (deaths per 1000 live births) 24.9 29.5

19
Health Insurance for India’s Missing Middle https://www.niti.gov.in/sites/default/files/2021-12/Health%20Insurance%20for%20
India%E2%80%99s%20Missing%20Middle_08-12-2021.pdf (Accessed on 18th March 2022).
47 The state of inequality in India report
The state of inequality in India report 48

Children receiving Post Natal Care (%)

Goa

Puducherry

Tamil Nadu

Lakshadweep

Andhra Pradesh

Kerala

Haryana

Dadra & Nagar Haveli and


Daman & Diu
Andaman & Nicobar Islands

Telangana

Chandigarh

Maharashtra

Gujarat

Odisha

Rajasthan

Delhi

Himanchal Pradesh

Karnataka

Punjab

Madhya Pradesh

Chhattisgarh

Jammu & Kashmir

Uttarakhand

West Bengal

Ladakh

Tripura

Manipur

Uttar Pradesh

Assam

Jharkhand

Sikkim

Bihar

Arunachal Pradesh

Meghalaya

Nagaland

Mizoram

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Fig. 3.3 The graph represents the percentage of children receiving post-natal care 2 days after
birth, in all states and UTs (Source: NFHS-5 2019-21)
49 The state of inequality in India report

Women receiving Post Natal Care (%)

Goa

Kerala

Tamil Nadu

Puducherry

Lakshadweep

Dadra & Nagar Haveli and


Daman & Diu
Haryana

Andhra Pradesh

Chandigarh

Gujarat

Andaman & Nicobar Islands

Odisha

Telangana

Karnataka

Himanchal Pradesh

Punjab

Maharashtra

Delhi

Rajasthan

Jammu & Kashmir

Chhattisgarh

Madhya Pradesh

Ladakh

Uttarakhand

Manipur

Uttar Pradesh

Tripura

Sikkim

Jharkhand

West Bengal

Mizoram

Assam

Bihar

Arunachal Pradesh

Nagaland

Meghalaya

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Fig. 3.4 The graph represents the percentage of women receiving post-natal care 2 days post-
delivery, in all states and UTs (Source: NFHS-5 2019-21)
The state of inequality in India report 50

Nutritional Profile and India’s fight against Anaemia

Nutritional insecurity has been one of the and 7.7% are severely wasted. Additionally,
biggest challenges facing India’s health 32.1% of children (under five years) were
system. World Health Organisation (WHO) reported to be underweight, and 3.4% as
defines malnutrition as deficiencies or overweight
excesses in mineral and nutrient intake.
This leads to both undernutrition and
overweight and obesity. Undernutrition
presents as wasting, stunting, underweight
and micro-nutrient deficiencies20.
7.7% 32.1% 3.4%
Nutrition profile among children has Severely wasted Underweight Overweight
improved compared to 2015-16 (NFHS 4),
like stunting in children has gone down POSHAN Abhiyaan (launched in March
from 38.4% and wasting from 21%. As per 2018) aims to achieve the improved
NFHS 5 (2019-21), 35.5% of children under nutritional status of children in the age
five years are stunted , 19.3% of children
21
group 0-6 years, adolescent girls, and
under five years are wasted , 22
pregnant women. It is specifically focused
on lowering anaemia in women, children
Stunting in Children and adolescent girls. The reductions,
under 5 years of age however, have only been marginal, and
the crisis of nutritional vulnerability among
children looms large. Among adults, 18.7%
of women have a below normal BMI, with
21.2% in rural India. 16.2% of men have
a below normal BMI. A low BMI reflects
38.4% 35.5% undernutrition and weight loss caused
2015-16 (NFHS 4) 2019-21 (NFHS 5) due to inadequate diet and/or prolonged
illness.
Wasting in Children
under 5 years of age Jharkhand (26.2%) and Bihar (25.6) have
the highest rate of women with low BMI,
while Bihar (21.5) and Gujarat (20.9) have
the highest rate of men below normal BMI.

Nutritional insecurity has been one of the


21% 19.3% biggest challenges facing India’s health
2015-16 (NFHS 4) 2019-21 (NFHS 5) system. World Health Organisation (WHO)

20
https://www.who.int/health-topics/malnutrition#tab=tab_1 (Accessed on 18th March 2022).
21
Stunting is defined as low height-for-age. It is caused as a result of chronic undernutrition and is associated with poverty, poor maternal
nutrition and health, inadequate feedinga and care and/or frequent illness associated with diet.
22
Wasting is defined as low weight-for-age caused due to severe weight loss because of inadequate eating and frequent or prolonged illness.
51 The state of inequality in India report

defines malnutrition as deficiencies or


excesses in mineral and nutrient intake.
This leads to undernutrition, overweight
and obesity. Undernutrition presents
Men with low BMI
as wasting, stunting, underweight and
20.9%
micro-nutrient deficiencies. Gujarat

Men with low BMI


Women with low BMI 21.5%
26.2% Bihar
Jharkhand

Bihar continues to be the state with


the highest population of nutritionally
vulnerable children, with as many as
41% of children below 5 years being
Women with low BMI underweight and 42.9% having stunted
25.6% growth. Maharashtra has 25.6% of children
Bihar as wasted and 10.9% as severely wasted –
the highest in the country.
The state of inequality in India report 52

Severely Wasted growth Stunted growth Wasted growth

Andaman & Nicobar


Islands
Andhra Pradesh

Arunachal Pradesh

Assam

Bihar

Chandigarh

Chhattisgarh
Dadra & Nagar Haveli
and Daman & Diu
Delhi

Goa

Gujarat

Haryana

Himanchal Pradesh

Jammu & Kashmir

Jharkhand

Karnataka

Kerala

Ladakh

Lakshadweep
Madhya Pradesh

Maharashtra

Manipur

Meghalaya

Mizoram

Nagaland

Odisha

Puducherry

Punjab

Rajasthan

Sikkim

Tamil Nadu

Telangana

Tripura

Uttar Pradesh

Uttarakhand

West Bengal
-9 -8 -7 -6 -5 -4 -3 -2 -1 0 1 2 3 4 5 6 7 8 9

Difference between NFHS 4 and NHFS 5 (%points)

Fig. 3.5 The graph shows the changes in percentage points between NFHS 5 and NFHS 4 data on
stunted growth, wasted growth and severely wasted growth amongst children in all states and
UTs. The right panel in the figure showcases increase in percentage points across these indicators,
whereas the left panel in the figure shows decrease in percentage points. Higher increase in
percentage points reflects an increase in the number of children with stunted, wasted and severely
wasted growth respectively. (Source: NFHS-5 2019-21 and NFHS-4 2015-16)
53

0%
2%
4%
6%
8%
10%
12%
14%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Andaman & Nicobar Andaman & Nicobar
Island Island
Andhra Pradesh Andhra Pradesh
Arunachal Pradesh Arunachal Pradesh
Assam Assam
Bihar Bihar
Chhattisgarh Chhattisgarh
Chandigarh Chandigarh
Dadra & Nagar Haveli and Dadra & Nagar Haveli and
Daman & Diu Daman & Diu
Gujarat Gujarat
Delhi Delhi
Haryana Haryana
Goa Goa
Himanchal Pradesh Himanchal Pradesh
Jammu & Kashmir Jammu & Kashmir
Jharkhand Jharkhand
Karnataka Karnataka
Ladakh Ladakh
Lakshadweep Lakshadweep
Madhya Pradesh Madhya Pradesh
Maharashtra Maharashtra
Kerala Kerala
Manipur Manipur

percentage of overweight population


percentage of underweight population
Meghalaya Meghalaya
Mizoram Mizoram
Nagaland Nagaland
Odisha Odisha
Puducherry Puducherry
Punjab Punjab
UTs across NFHS-4 and NFHS-5 (Source: NFHS-5 2019-21 and NFHS-4 2015-16)

UTs across NFHS-4 and NFHS-5 (Source: NFHS-5 2019-21 and NFHS-4 2015-16)
Rajasthan Rajasthan
Sikkim Sikkim
Tamil Nadu NFHS-4 Tamil Nadu
NFHS-4

Telangana Telangana
Tripura Tripura
Uttar Pradesh Uttar Pradesh
Uttarakhand Uttarakhand

Fig. 3.7 The bar graph represents the percentage of the overweight population in all States and
Fig. 3.6 The bar graph represents the percentage of the underweight population in all States and

West Bengal West Bengal


NFHS-5
The state of inequality in India report

NFHS-5
The state of inequality in India report 54

Along with nutritional poverty, the rate of anaemia (especially among children
under the age of 5 and pregnant women) is another health emergency facing India.
Anaemia is when haemoglobin – responsible for carrying oxygen to all the organs-
decreases in the blood, causing tiredness and weakening the immune system, making
an individual more prone to infections and affecting their physical and cognitive
development. The primary cause of anaemia is iron and folic acid deficiency.
Governments have been committed to lowering the prevalence of anaemia through
initiatives grounded in the distribution of iron and folic acid tablets. Most recently, the
campaign “Anaemia Mukt Bharat” launched with POSHAN Abhiyaan and the National
Nutrition Mission aims at reducing the anaemia prevalence by 3% every year among
children, adolescents and women of reproductive age.

In India, the percentage of anaemic children under


5 years of age (6-59 months) has increased from
58.6 % in 2015-16 to 67.1% in 2019-21. Gujrat reports
more than the national figure, with 79.7% of children
having anaemia, which increased from 62.6% in
2015-16. Ladakh has recorded 92.5% of children
with anaemia among the Union Territories. A similar
trend is visible, with an increasing prevalence rate
of anaemia among adolescent girls (59.1% from
54.1%) and women of reproductive age (57.2% from
53.2%). In comparison to women, adolescent boys
(31.1%) and men (25%) have reported lower rates of
anaemia. Despite this, a rise in the prevalence rate
is apparent here as well.
55 The state of inequality in India report
The state of inequality in India report 56

NFHS-4 NFHS-5
Percentage of Anaemic Women (15-49 Years)

Bihar

Ladakh

Gujarat

West Bengal

Odisha

Tripura

Dadra & Nagar Haveli


and Daman & Diu
Jharkhand

Haryana

Assam

Andhra Pradesh

Telangana

Madhya Pradesh

Chhattisgarh

Punjab

Tamil Nadu

Uttarakhand

Rajasthan

Uttar Pradesh

Karnataka

Maharashtra

Meghalaya

Jammu & Kashmir

Puducherry

Himanchal Pradesh

Delhi

Sikkim

Mizoram

Manipur

Kerala

Arunachal Pradesh

Nagaland

Lakshadweep

Goa

Andaman & Nicobar Islands

0 10% 20% 30% 40% 50% 60% 70% 80% 90%

Anaemic Women (15-49 years) (%)

Fig. 3.8 The graph shows the percentage of anaemic women in the age group of 15-49 years in all
states and UTs in India (Source: NFHS-5 2019-21 and NFHS-4 2015-16)
57 The state of inequality in India report

NFHS-4 NFHS-5
Percentage of Anaemic Children (06-59 Months)

Andaman &
Nicobar
Andhra Pradesh

Arunachal Pradesh

Assam

Bihar

Chandigarh

Chhattisgarh
Dadra & Nagar Haveli
and Daman & Diu
Delhi

Goa

Gujarat

Haryana

Himanchal Pradesh

Jammu & Kashmir

Jharkhand

Karnataka

Kerala

Ladakh

Lakshadweep

Madhya Pradesh

Maharashtra

Manipur

Meghalaya

Mizoram

Nagaland

Odisha

Puducherry

Punjab

Rajasthan

Sikkim

Tamil Nadu

Telangana

Tripura

Uttar Pradesh

Uttarakhand

West Bengal

0 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 110% 120% 130% 140% 150% 160% 170% 180% 190%

Anaemic Children (6-59 months) (%)


Fig. 3.9 The graph shows the percentage of anaemic children in the age group of 6-59 months in
all the states and UTs of India (Source: NFHS-5 2019-21 and NFHS-4 2015-16)
The state of inequality in India report 58

More percentage of pregnant (15-49 the IMF), India has the highest anaemia
years) women have anaemia compared prevalence in the South Asian region
to 2015-16. It has increased from 50.4% to (Pakistan, India and Bangladesh), with
52.2%. This increase has not been as steep 53% among pregnant women and children
as reported in other demographics but under five years of age. As per WHO
remains a cause of concern nonetheless. estimates, India’s average is above the
Bihar has the highest rate of prevalence global average of 39.8% among children
of anaemia among pregnant women with between 6-59 months and 36.5% for
63.1% (registering an increase of 4.8% from pregnant women. Highest remains in
NFHS-4), closely followed by Gujarat with Nigeria (Sub-Saharan African region) with
62.6% (an 11.3% increase). 55.1%23, indicating that India is nowhere
near its goal of reducing this serious public
Globally, among the developing countries health problem.
and emerging markets (as defined by

2018 2019
Percentage of Anaemic Women (15-49 Years)
Region Countries

East Asia China


& Pacific Indonesia
Thailand
Europe & Central Russia Federation
Latin Argentina
America & Brazil
Caribbean Mexico

Middle East Egypt


& North Iran
Asia Saudi Arabia
South Asia Bangladesh
India
Pakistan
South Angola
Saharan Nigeria
Africa
South Africa
0 10 20 30 40 50 60 70 80 90 100 110

Fig. 3.10 The graph shows the percentage of anaemic women in their fertile years (15-49 years) in
developing countries (Source: WHO)

23
https://www.who.int/data/gho/data/indicators/indicator-details/
GHO/prevalence-of-anaemia-in-women-of-reproductive-age-(-)
(Accessed on 18th March 2022).
59 The state of inequality in India report

2018 2019 Percentage of Anaemic Children (6-59 Months)


Region Countries

East Asia China


& Pacific Indonesia
Thailand
Europe & Central Russia Federation
Latin Argentina
America & Brazil
Caribbean Mexico

Middle East Egypt


& North Iran
Asia Saudi Arabia
South Asia Bangladesh
India
Pakistan
South Angola
Saharan Nigeria
Africa
South Africa
0 10 20 30 40 50 60 70 80 90 100 110 120 130 140

Fig. 3.11 The graph shows the percentage of children in the age group of 6-59 months in
developing countries (Source: WHO)

Insights

In India, catastrophic health issues are second, making sure that people are not
one of the most devastating life shocks undernourished due to socio-economic
that trigger a descent into poverty. constraints like poverty or discriminatory
Additionally, relatively low health behaviour towards groups of society. The
coverage and costlier health services in need is to establish food-based dietary
the private sector cause a high out-of- guidelines guaranteeing that basic
pocket expenditure that forces people nutritional needs are not unaffordable.
to dip into their life savings at times. The Every household should be empowered
need is to transform the state of India’s enough that the Cost of Recommended
health sector to make it more socio- Diet (CoRD24) is not more than 16% of their
economically inclusive, accessible and household consumption expenditure.
affordable. Similarly, OOPE should not exceed
To ensure good health and promote well 7.3% of health expenditure. Structural
being for all ages, the country needs to transformation in order to make the health
give utmost importance to high rates of sector more equitable depends on daily
nutritional deficiency across various age behavioural changes where people hold
groups. This needs to be taken care of on power to prioritise their health and are not
two fronts – first, creating health facilities compelled by socio-economic limitations
that are embedded in the community to not being able to focus on their body
itself to nurture practices of vitamin and mental health.
in-take and nutrient sufficiency and
24
Kalyani Raghunathan, Derek Heady, Anna Herforth, “Affordability
of Nutritious Diets in Rural India”, IFPRI Discussion Paper 01912, 2020.
The state of inequality in India report 60

04
61 The state of inequality in India report

The Education
Gap
The centrality of a strong and equitable education
system to the overall growth and development of
the country is hidden to none. As a determinant of
increased quality of life, education is an investment in
human capital and is a basic need for sustenance25.

Moreover, education plays a four significant areas of the Right to


more significant role in reducing Education Act, 2010 and have in its
inequalities and poverty. It is not ambit to build an education system
only a positive trigger to socio- that rests on equitable distribution
economic mobility, but its impact of resources and promotes the
on the structural transformation development of marginalised and
of a society only leads to stability disadvantaged groups. With massive
and sustainability. As a Sustainable loss of learning days, in the face
Development Goal, the focus is of the Covid Pandemic, it is all the
not only on providing education more pertinent to have a system that
to all but on the good quality of brings classrooms into our houses so
education. This means an inclusive that no child has to drop studying
education system should focus on a because of inaccessibility to any kind
robust infrastructure and make the of resources – digital or physical. At
system more socially responsive, i.e. the same time, education should be
no one desirous of education should affordable so that no student has
have to choose against pursuing it to face disproportionate impact of
because of their social or economic poverty and inequality. In this view,
context. Additionally, an overall the idea of education as a public
level of basic education should good and universalisation of school
be maintained in the society that education should be the immediate
equips them to lead a life of dignity priority26. Currently, the literacy rate
and adequacy. in India (for five years & above) is at
77%, with 71% of females and 84.1% of
“Availability, Accessibility, literate males.
Acceptability and Adaptability” are
25
Tilak, Jandhyala. (2002). Education and Poverty. Journal of Human Development and Capabilities. 3. 191-207.
10.1080/14649880220147301.
26
https://www.epw.in/journal/2021/6/letters/education-union-budget-2021%E2%80%9322.html
The state of inequality in India report 62

Additionally, foundational learning and capacity. Moreover, it is a proven fact that


numeracy – basic reading, writing, and an investment in the Foundational Literacy
mathematical skills – as the basis of early and Numeracy can lead to about a 7.3%
education needs to be given due attention increase in the GDP.27 As a developmental
as socio-economic, psychological and solution to inequality, stressing on
technological hinderances can have a foundational years of a child’s education
long-term impact on a child’s cognitive will yield results in reducing the intensity of
childhood poverty.

Physical Infrastructure

With one of the largest schooling systems for safe drinking water on the school
globally, maintaining an equitable and premises. This was a substantial increase
conducive learning environment is of from 2017-18, with approximately 59% of
utmost importance to have a positive schools having access to safe drinking
impact on poverty reduction. Close water29. According to the Jal Jeevan
attention to a school’s infrastructure is Mission as well, as many as 83.11% of
essential for achieving desired learning schools and 78.89% of Anganwadi
outcomes and making sure that the Centres have a tap water supply for use
basic needs of students are fulfilled. This in toilets/urinals and handwashing.30
includes ensuring that students have At the same time, States and Union
access to basic hygiene and sanitation Territories like Meghalaya(57.86%),
facilities exclusive to the school and that Nagaland(33.43%), Ladakh(29.79%),
quality education is imparted through Arunachal Pradesh(23.05%) and Tripura
technologically driven methods. In this (19.49%) continue to have a substantial
respect, results from Unified District percentage of schools lacking access to
Information System For Education (UDISE+) drinking water which is worrisome.
are used to understand the infrastructural
strengths of Indian schools across About 95% of schools have functional
indicators like sanitation (availability of toilet facilities (95.9% functional boy’s
toilet facility), availability of tap water, toilets and 96.9% for girls) on the premises,
electrification and internet facilities in which is a marginal improvement from
schools.28 93.25% of schools in the previous year
(2018-19).
As per the results, in 2019-20, 97.5% of
schools in India had established facilities
28
https://dashboard.udiseplus.gov.in/assets/images/pdf/
UDISE+2019_20_Booklet.pdf (Accessed on 17th March, 2022)
27
EAC-PM & Institute for Competitiveness (2021), State of
29
Ibid.
Foundational Literacy and Numeracy in India.
30
https://ejalshakti.gov.in/jjmreport/JJMIndia.aspx (Accessed on
18th March, 2022).
63 The state of inequality in India report
The state of inequality in India report 64

It is evident that schools have made key developments in enhancing basic infrastructure
exclusive to schools making sure that learners don’t have to compromise on sanitation
to gain education and that schools do not become a hub of diseases caused by
contaminated water or lack of toilets.

100%
Functional electricity
connection(%)

50%

0%

100%
Functional toilets (%)

50%

0%

100%
drinking water facility
% Schools with

50%

0%
Andaman & Nicobar Islands
Andhra Pradesh
Arunachal Pradesh
Assam
Bihar
Chandigarh
Chhattisgarh
Dadar & Nagar Haveli
Delhi
Goa
Gujarat
Haryana
Himachal Pradesh
Jammu & Kashmir
Jharkhand
Karnataka
Kerala
Ladakh
Lakshadweep
Madhya Pradesh
Maharashtra
Manipur
Meghalaya
Mizoram
Nagaland
Odisha
Puducherry
Punjab
Rajasthan
Sikkim
Tamil Nadu
Telangana
Tripura
Uttar Pradesh
Uttarakhand
West Bengal

Fig. 4.1 The graphs show the percentage of schools in each state and UT that have drinking water
facilities, functional electricity connections and functional toilets (Source: UDISE+ 2019)
65 The state of inequality in India report

Similarly, in 2019-20 83.3% of schools have students also imply that no student from
electricity connections, while only 80.16% any social group is excluded from gaining
of schools across India have a functional out of a technologically-driven curriculum
electricity connection. Union Territories from whichever school they choose to
like Chandigarh, Delhi, Dadra and Nagar study. In this respect, Indian schools are
Haveli and Daman and Diu, Lakshadweep improving at a very staggering pace,
and Puducherry have achieved universal with only a meagre 38.5% of schools in
(100%) coverage of functional electricity India having functional computers. While
connections. The states of Goa and states like Kerala (93.41%) and Chhattisgarh
Tamil Nadu have followed the same suit. (85.34%) have a high rate (%) of schools
Meghalaya (21.68%), Tripura (37.69%) and with functional computers, Meghalaya
Assam (39.47%) have the lowest number of (13.63%) and Madhya Pradesh (13.59%)
schools with electricity connections and are still far behind. The Union Territory of
functional electricity connections. However, Chandigarh (99.56%) has almost all schools
remarkable improvements have been with computer facilities.31
made at an all India level, from only 54.6%
of schools with electricity in 2012-13 to A similar pattern is visible regarding
83.4% in 2019-20. internet availability, with only a mere
22.18% of schools having internet access.
With the digital transformation of Despite the steep improvement from
education globally and in India, it is 2012-13 with only 6.2% to 22.18% in 2019-20,
pertinent that all schools have access the progress remains low, with states like
to computers and internet facilities so Tripura(3.88%) and Meghalaya(3.85%) still
that technological penetration among having an availability rate of less than 5%
learners begins from the very beginning each. Given the centrality of ICT in today’s
and gaining education becomes a more world, it is vital to take proactive steps
comprehensive and interactive process. to improve the state of computer and
Inclusive schools with universal modern internet availability in schools to modernise
technical facilities available to all the the country’s education structure. Other
31
https://dashboard.udiseplus.gov.in/#/reportDashboard/sReport (Accessed on 17th March 2022).
The state of inequality in India report 66

facilities like space for libraries or reading importance, with nearly 85% of schools
rooms essential for creating a conducive having designated rooms for libraries and
learning environment have also been given readings.

Functional Computer Access to internet


Andaman & Nicobar Islands
Andhra Pradesh
Arunachal Pradesh
Assam
Bihar
Chandigarh
Chhattisgarh
Dadar & Nagar Haveli and Daman & Diu
Delhi
Goa
Gujarat
Haryana
Himachal Pradesh
Jammu & Kashmir
Jharkhand
Karnataka
Kerala
Ladakh
Lakshadweep
Madhya Pradesh
Maharashtra
Manipur
Meghalaya
Mizoram
Nagaland
Odisha
Puducherry
Punjab
Rajasthan
Sikkim
Tamil Nadu
Telangana
Tripura
Uttar Pradesh
Uttarakhand
West Bengal

0% 20% 40% 60% 80% 100%

Schools with Computer & Internet (%)

Fig. 4.2 The graph above shows the percentage of schools in each state and UT with functional
computers and access to the internet (Source: UDISE+ 2019)
67 The state of inequality in India report

Similarly, in 2019-20 83.3% of schools have Tamil Nadu have followed the same suit.
electricity connections, while only 80.16% Meghalaya (21.68%), Tripura (37.69%) and
of schools across India have a functional Assam (39.47%) have the lowest number
electricity connection. Union Territories of schools with electricity connections
like Chandigarh, Delhi, Dadra and Nagar and functional electricity connections.
Haveli and Daman and Diu, Lakshadweep However, remarkable improvements have
and Puducherry have achieved universal been made at an all India level, from only
(100%) coverage of functional electricity 54.6% of schools with electricity in 2012-13
connections. The states of Goa and to 83.4% in 2019-20.32
Box 4.1

Pupil Teacher Ratio (PTR)


The Pupil-Teacher Ratio (PTR) is defined as the number of students relative to the number
of students in an institution. A lower PTR is considered to be a prime indicator of quality of
education imparted. Factors like allocation of resources (human and physical), workload
on the teachers and efficiency impact the quality of education as well as how much
attention is paid to each student by a teacher. An ideal PTR should be 30:1 (indicating
that a single teacher looks over a class of not more than thirty students). As per the results
of 2019-20, the current PTR at the all-Indian level stands at 26.5 for Primary level (classes
1-5th), 18.5 for Upper Primary (classes 6th-8th), 18.5 for Secondary (classes 9th-10th) and
26.1 for Higher Secondary level (classes 11th-12th). In this respect, situation of teachers are
worse in Bihar with 55.4 for Primary level, 19.4 for Upper Primary, 51.8 in Secondary and 59.5
for Higher Secondary level. In Odisha, the PTR for Higher Secondary at 66.1 reflecting that
these states need to invest in easing the burden from the current teaching faculty and
create opportunities for hiring more teachers.

Enrolment in Schools

As per NFHS-5 (2019-21), 71.8 % of the recording a mere 33.7% of women with ten
female population aged 6 years and or more years of schooling. In contrast,
above have attended school at least men with ten or more years of schooling
once. At the same time, the percentage are recorded at 50.2% at all India level33.
of women who have completed at least These numbers highlight a gendered
ten or more years of schooling remains pattern toward access to education and
abysmally low at 41% (with rural regions the opportunity to stay in education for as
32
Ibid.
33
NFHS -5 2019-21
The state of inequality in India report 68

long as one desires. These skewed numbers appropriate for that level of education.
present the need for gender equity in For instance, GER of primary level – class
schools where students, regardless of their 1-5th will be expressed in relation to the
gender identity, have equal access and percentage of the population in the 6-10
availability of opportunities. years age group. Sometimes, the GER
is above 100%, indicating the presence
The Gross Enrollment Ratio (GER) of over or under-aged students in a
determines the number of students particular grade level. In 2019-20, the GER
in a school corresponding to different for boys and girls across respective grade
grade levels and compares them to the levels was as follows:
population of the age group which is age-

Table 4.1 Gross Enrolment Ratio (GER) by Gender and Level of School (2019-20 & 2018-19)

EDUCATION LEVEL 2019-20 2018-19

GIRLS BOYS TOTAL GIRLS BOYS TOTAL


PRIMARY (I-V) 103.69 101.87 102.74 101.78 100.76 101.25
UPPER PRIMARY
(VI-VIII) 90.46 88.93 89.67 88.54 87 87.74

SECONDARY (IX-X) 77.83 77.97 77.9 76.93 76.87 76.9


HIGHER
SECONDARY (XI-XII) 52.4 50.52 51.42 50.84 49.49 50.14

Source: UDISE+ Dashboard – 2019-20

The above table details the significant from 2018-19, but the same pattern of
improvement made in Gross Enrolment in declining enrolment ratio as one moves
2019-20 as compared to 2018-19 across from primary to higher secondary is visible.
all levels of education. While the gross The NER can be defined as the number of
enrolment has increased in the higher students (boys and girls) from a specific
secondary level (classes 11th -12th), one age group enrolled in an age-appropriate
can notice a steady decline from primary level of education. Therefore, a NER of
to higher secondary among girls and 91.4 at the primary level indicates that out
boys. This decline is consistent in both of 100 children in the age group of 6-10
years, drawing our attention to the fact years (corresponding age group), about
that not all students are able to finish 91 students are enrolled in primary school
their schooling (this includes students who (corresponding level of education). The NER
have dropped out and students who have highlights the extent of participation of an
failed out of school. Additionally, the Net age group in education and helps analyse
Enrolment Ratio (NER) has also improved access to education on a gender basis.
69 The state of inequality in India report

Table 4.2 Net Enrolment Ratio (NER) by Gender and Level of School (2019-20 & 2018-19)

EDUCATION LEVEL 2019-20 2018-19

GIRLS BOYS TOTAL GIRLS BOYS TOTAL


PRIMARY (I-V) 92.37 90.52 91.4 89.83 88.56 89.16
UPPER PRIMARY
(VI-VIII) 71.89 70.44 71.14 69.91 68.18 69.01

SECONDARY (IX-X) 50.3 50.17 50.23 49.01 48.25 48.61


HIGHER
SECONDARY (XI-XII) 9.79 9.31 9.54 8.89 8.74 8.81

Source: UDISE+ Dashboard – 2019-20

The Gender Parity Index (GPI) based on


GER reflects the representation of females
in schools in relation to the population of
girls in the corresponding age group. A
value of 1 shows a favourable picture, while
anything less than 1 shows relative under-
representation.

In 2019-20, the GPI was more than


1 across all levels of education
at the all India level. However,
state-wise analyses depict
that in states like Rajasthan,
GPI was less than 1 in upper
primary, secondary and
higher secondary levels.
Similarly, Uttar Pradesh,
Maharashtra, Karnataka,
and Manipur were some
states that recorded a less
than 1 GPI in at least one
level of education.
The state of inequality in India report 70

Boys Girls

Uttar Pradesh
Bihar
Maharashtra
West Bengal
Rajasthan
Madhya Pradesh
Tamil Nadu
Karnataka
Gujarat
Andhra Pradesh
Jharkhand
Odisha
Assam
Telangana
Kerala
Punjab
Chhattisgarh
Haryana
Delhi
Jammu & Kashmir
Uttarakhand
Himachal Pradesh
Meghalaya
Tripura
Manipur
Nagaland
Arunachal Pradesh
Mizoram
Goa
Puducherry
Chandigarh
Sikkim
Dadar & Nagar Haveli and Daman & Diu
Andaman & Nicobar Islands
Ladakh
Lakshadweep

0 1,00,00,000 2,00,00,000 3,00,00,000 4,00,00,000 5,00,00,000

Total Students Enrolled (in numbers)

Fig. 4.3 The total number of girls and boys enrolled in school (pre-primary, grade 10 and grade 12)
in all states and UTs (Source: UDISE+ 2019)

In terms of dropout rates, the percentage upper primary, the dropout rate has fallen
of students dropping out from various from 4.68% to 2.60% in 2019-20 and from
levels of education has significantly 17.9% to 16.09% in secondary. In terms of
improved from 2018-19, with a decline from social categories, students from Scheduled
4.45% overall to only 1.4% at the primary Castes (SC) and Scheduled Tribes (ST) have
level. The falling dropout rates are across had a higher dropout rate in comparison
female and male students. Likewise, in
71 The state of inequality in India report

to students from Other Backward SC students dropping out of secondary


Communities (OBCs). In 2018-19, 24.9% education. Despite the reducing trend,
of ST students and 20.2% of SC students the dropout percentage remains higher in
dropped out at the secondary level. In marginalised communities
2019-20, this number marginally reduced
to 24.18 % of ST students and 18.5% of

8%
Total dropout-
primary (1-5)

6%

4%

2%

0%

30%
secondary (9-12)
Total dropout-

20%

10%

0%

8%
Total dropout-upper
primary (6-8)

6%

4%

2%

0%
Andaman & Nicobar Islands
Andhra Pradesh
Arunachal Pradesh
Assam
Bihar
Chandigarh
Chhattisgarh
Dadar & Nagar Haveli and Daman
& Diu
Delhi
Goa
Gujarat
Haryana
Himachal Pradesh
Jammu & kashmir
Jharkhand
Karnataka
Kerala
Ladakh
Lakshadweep
Madhya Pradesh
Maharashtra
Manipur
Meghalaya
Mizoram
Nagaland
Odisha
Puducherry
Punjab
Rajasthan
Sikkim
Tamil Nadu
Telangana
Tripura
Uttar Pradesh
Uttarakhand
West bengal

Fig. 4.4 The graph shows the percentage of dropouts amongst students in all states and UTs
(Source: UDISE+ 2019)
The state of inequality in India report 72

ST SC OBC General

Uttar Pradesh

Bihar

Maharashtra

West Bengal

Rajasthan

Madhya Pradesh

Tamil Nadu

Karnataka

Gujarat

Andhra Pradesh

Jharkhand

Odisha

Assam

Telangana

Kerala

Punjab

Chhattisgarh

Haryana

Delhi

Jammu & Kashmir

Uttarakhand

Himachal Pradesh

Meghalaya

Tripura

Manipur

Nagaland

Arunachal Pradesh

Mizoram

Goa

Puducherry

Chandigarh

Sikkim

Dadar & Nagar Haveli and Daman & Diu

Andaman & Nicobar Islands

Ladakh

Lakshadweep
0 1,00,00,000 2,00,00,000 3,00,00,000 4,00,00,000

Total Students Enrolled (in numbers)

Fig. 4.5 Number of enrolments by each social category in all states and UTs (Source: UDISE+ 2019)
73 The state of inequality in India report

Insights

An increase in enrolment is symbolic of school followed by grade 1&2. Emphasis


increasing investments in the education on foundational learning provides a base
sector. Out of approximately 26.6cr total on which future education qualifications
enrolments, nearly 37.13% of students were rests. Focus on these years is also
enrolled in private unaided (recognised) essential to make sure that children don’t
schools, and about 49.5% of students drop out because of poverty.
were enrolled in government schools Building a comprehensive schooling
across different grades (rest were enrolled system for imparting quality and
in schools with different management modern education triggers social
types). mobility and ensures that barriers like
social or economic discrimination and
Targeted efforts at making schools unavailability of basic facilities are
equitable for all socio-religious categories removed from the way to our inclusive
have led to achieving critical goals classrooms. With initiatives like Swachh
like reducing dropout rates, increasing Bharat Abhiyan, Jal Jeewan Mission, Mid-
retention rate, achieving gender equity, day Meals and Samagra Shiksha, schools
and a higher gross enrolment ratio. At the become safe spaces for children to gain
same time, access to quality education lifelong skills and make behavioural
to reduce poverty and socio-economic changes conducive to their well-being.
inequalities requires regular investment
in the overall infrastructure of the school.
This entails physical infrastructure and
making sure that pupil to teacher ratio is
optimal and the schools are responsive to
each student’s needs.

At the same time, realising the mission of


equality of education requires a focus on
not only increasing enrolments but making
sure that every learner is able to finish the
course of their education from primary to
higher secondary, wherein they are able
to develop necessary skills for professional
and intellectual development. This
requires a close attention on a child’s
education cycle beginning from the
foundational years – three years of pre-
The state of inequality in India report 74

05
75 The state of inequality in India report

Household
Characteristics
The everyday experiences of inequality and poverty
are intensely reflected in the living standards of the
population, and therefore mapping the household
conditions becomes essential to ascertain the extent
of inequality and its socio-economic manifestations.

Closely tied to Goal 6 – “Clean resources like electricity, iodised


Water and Sanitation” and Goal salt, cooking fuel and the position
10 – “Reducing Inequalities” of the accorded to the women of the house
Sustainable Development Goals, it in terms of role in decision making
should be in our collective vision to and ownership of assets.
build sustainable as well as resilient
households as our step towards Approaching inequality at the most
universal equity. An empowered basic level – the households – is
household represents not only a important for understanding how
harmonious environment but also an experiences of deprivation are felt in
equitable distribution of goods and the most ordinary and extraordinary
resources that are required by all manners. The impact of economic
members of the society for individual depravity on the social existence
and collective growth. While India is of a household is significant to all
not yet there in terms of achieving approaches to inequality reduction.
this utopia, it has made remarkable In cases where low incomes limit a
strides in ensuring accessibility to household’s consumption capacity
bare necessities for its population. where they have to make choices
As per the National Family and between necessities, the experience
Health Surveys conducted by the of poverty and inequality becomes
Ministry of Health and Family Welfare, more profound. Food insecurity
household characteristics are broadly is one such occurrence where
studied on the availability of safe socio-economic manifestations of
drinking water, improved sanitation inequality are most visible as a low
facilities with individual household economic position hinders access
toilets, asset holdings, access to to adequate food and nutrition,
The state of inequality in India report 76

leading to undernourishment and, in rural and urban landscapes. The strong


extreme cases, mortality. bias towards the urban spaces with
favourable provisions of facilities required
As per Global Health Index 202134, India for an adequate standard of living is an
ranks 101 out of 116 countries with a score antithesis to achieving equitable growth
of 27.5, indicating that inadequate food and reducing inequalities35.
supply, undernourishment (leading to
wasting and stunting among children) and This chapter looks at analysing the
child mortality due to hunger are serious household profile by looking at indicators
issues that India needs to deal with like wealth concentration, sanitation and
starting at the grassroots. Empowering water availability, access to electricity,
households also extends to ensuring that iodised salt and cooking fuel. These
sanitation facilities and safe drinking together also form a basis of bare
water are available to each household necessities36 as defined in the Economic
to reduce the chances of contracting Survey of 2021-2237. Furthermore, women’s
dangerous infections and diseases. At roles and position within households
the same time, it is imperative to ensure are also studied to understand gender
that empowerment happens across dynamics that impact the distribution and
regions and reduces the gap between access to resources.

Wealth Concentration

The National Family and Health Survey between rural and urban spaces. A 44.4%
(NFHS) 2015-1638 has prepared a wealth wealth concentration in the highest
index based on the quantity and kinds of quintile in urban areas is contrasted
consumer goods they own like television, with a meagre 7.1% concentration in the
vehicle or housing characteristics such highest quintile in rural India. Similarly,
as access to safe drinking water or toilet 28.4 % of households fall in the lowest
facilities inside the home. Understanding quintile in the rural landscape, while only
patterns of asset consumption and 3.1 of households in the urban regions39.
concentration gives us an insight into the Notably, more than 50% of the households
gap between the topmost with saturated fall in the bottom two quintiles of wealth
wealth and the bottom-most population concentration (approx. 54.9%).
living with scarce resources.
The staggering gap between the rural
The data has revealed that there exists and urban spaces indicates huge income
a huge gap in terms of household wealth disparity and the choices households
34
https://www.globalhungerindex.org/india.html (Accessed on 27th March, 2022).
35
H.S. Shergill, “Rural–Urban Disparity in the Standard of Living across States of India A Preliminary Estimate”, Economic and Political
Weekly, 56( 45-46): 2021, pp 44-50.
36
Bare Necessities comprising of housing, water, sanitation, electricity and clean cooking fuel, are important for leading a descent life. To
this respect, a Bare Necessities Index (BNI) is created at the rural, urban and India level in 2012 and 2018 using NSO rounds of 69th and 76th
on drinking water, sanitation, hygine and housing conditions. (Economic Survey 2021-22, 2022).
77 The state of inequality in India report

make between necessities and luxuries quintile (with Bihar capturing nearly 51%
due to limited capacities. Among of households in the lowest quintile).
the States and the Union Territories, Both states happen to have less than
Chandigarh, Delhi, Punjab, and Goa 10% of the concentration in the topmost
have accounted for more than 50% of quintile as well (Bihar at a mere 3.3% and
households in the highest quintile. At Jharkhand at 8.8%).
the same time, states like Bihar and
Jharkhand have recorded the highest Table 5.2
concentration in the bottom-most Minimum
States/UT
Table 5.1 BIHAR 3.300
Maximum TRIPURA 6.200
States/UT MEGHALAYA 6.300
CHANDIGARH 80.80 ASSAM 6.400
DELHI 62.80 ODISHA 7.300
PUNJAB 62.00 JHARKHAND 8.800
GOA 55.90 WEST BENGAL 9.400
Maximum concentration of wealth in the Minimum concentration of wealth in the
highest quintile. highest quintile.
80%

70%

60%

50%
Quantile (%)

40%

30%

20%

10%

0%
Chandigarh
Delhi
Punjab
Goa
Kerala
Haryana
Sikkim
Chhattisgarh
Nagaland
Manipur
Lakshadweep
Puducherry
Mizoram
Daman & Diu
Himachal Pradesh
Andaman & Nicobar Islands
Uttarakhand
Gujarat
Maharashtra
Jammu & Kashmir
Telangana
Tamil Nadu
Karnataka
Rajasthan
Dadar Nagar Haveli
Andhra Pradesh
Madhya Pradesh
Uttar Pradesh
West Bengal
NE Arunachal Pradesh
Jharkhand
Odisha
Assam
Meghalaya
Tripura
Bihar

Fig. 5.1 Highest wealth quintile for all states and UTs (Source: NFHS-4 2015-16
37
Economic Survey 2021-22 https://www.indiabudget.gov.in/economicsurvey/doc/echapter.pdf (Accessed on 25th March, 2022).
38
NFHS 4- 2015-16
39
Ibid.
The state of inequality in India report 78

The Survey has also recorded stakeholders like mobile service providers,
information on household goods, means device manufacturers and internet
of transportation, and owning any companies. By 2020, there was a
agricultural land. In 2015, mobile phones registered increase in internet subscribers
emerged as the highest own commodity by 22% from 2019, with approximately 743
across rural and urban regions, with million subscribers. Total rural internet
approximately 96% of urban households subscribers per 100 still remain at a
with mobile phones and about 87% in low of 34.4% compared to 55.12 urban
rural. Apart from it, almost 11% of total subscribers per 100, emphasising the
households (as per the sample size) need for better internet coverage across
were recorded to have internet facilities. villages and smaller districts.40
In 2015, the total percentage of rural
subscribers (both wireless and wireline) In terms of owning land, the NFHS-
stayed at approximately 42%, increasing 4 revealed that agricultural land is
to 44% in 2020. predominantly owned in rural regions, with
nearly 88% of non-agricultural land being
Households with mobile phones held in urban areas and almost 47% in
rural areas.
Rural Areas
87% A wealth based assessment helps
Urban Areas understand the socio-economic
96% manifestation of inequality at the
household level. There is a direct
relationship between income and
Rural subscribers (both wireless consumption patterns. 41 Access to and
and wireline) ownership of assets is fundamental to
the sustainability and well-being of a
household.

With a significant concentration of


42% 44% wealth among urban areas, the wealth
2015 2020 index of 2015 has depicted the gaps in
the distribution of wealth and assets,
With technology and innovation as indicating that much work is needed in
significant drivers of growth, the digital this regard. Additionally, it is essential to
divide only enforces socio-economic pay attention to the distribution patterns
inequalities. In this respect, the Telecom among the urban-dwellers where the
Regulatory Authority of India (TRAI) has NFHS data might fall short.
attempted to build a digitally inclusive
environment by involving important

40
TRAI Annual Report 2019-20. https://trai.gov.in/sites/default/files/Annaul_Report_02032021_0.pdf (accessed on 20th March, 2022).
U.S. Mishra and William Joe, “Household Assets and Wealth Quintiles, India 2006–16 Insights on Economic Inequalities”, Economic and
41

Politicly Weekly, 55(6): 2020, pp 77-82.


79 The state of inequality in India report

Water, Sanitation and Standard of Living

Universal access to clean water, sanitation diarrhoea and typhoid. Various rounds
and hygiene is the basis of all approaches of NFHS have helped assess the state
to achieving health equity and raising of water and sanitation poverty in the
living standards. Colloquially, food, country. In India, as per NFHS-5 (2019-
clothing and housing have always been 21), 95.9% of households in the country
considered as bare necessities vital for have access to improved drinking water
basic survival. Using the data from the two sources44. This is an improvement from
survey rounds of NSO (69th and 76th), A 94.4% as per NFHS-4 (2015-16). The rural
Bare Necessities Index was calculated as areas have also reported a 94.6% coverage
part of the Economic Survey 2020-21. The and 98.7% household access to improved
Index is developed across six indicators like drinking-water sources. To this end, the Jal
housing, water, sanitation, electricity and Jeevan Mission (JJM) envisages providing
clean cooking fuel based on Data from safe and adequate drinking water through
2012 (69th round) and 2018 (76th round).42 functional tap connections (FHTC).

The BNI assesses households’ access to The mission aims to increase the living
these resources to make sound public standards among rural households by
policies on improving overall access to building a water supply infrastructure with
these resources. At a global level, WHO regular and long-term functioning. The
and UNICEF reports have suggested that JJM Dashboard presents the extensiveness
as high as 2.6 billion people have improved of the mission, with states like Goa,
access to clean drinking water.43 Telangana and Haryana achieving
100% coverage of FHTCs. By 15th August
Access to clean and safe drinking water 2019, 16.75% of households had tap
is not only a fundamental right but also water connections, and most recently,
leads to a reduction in a lot of water- nearly 49% of households had tap water
based diseases and infections like cholera, connections.45

Access to improved drinking


water sources
Rural areas
Coverage
94.6%
household access to water
94.4% 95.9% 98.7%
2015 2020
44
These sources have been defined as piped water into dwelling/
42
Economic Survey 2021-22 https://www.indiabudget.gov.in/ yard/plot, piped to neighbour, public tap/standpipe, tube well, or
economicsurvey/doc/echapter.pdf (Accessed on 25th March, 2022). borehole protected dug well, protected spring, rainwater, tanker
43
Pritam Ghosh et al, “Water, Sanitation, and Hygiene (WASH) truck, cart with small tank, bottled water, community RO plant.
poverty in India: A district-level geospatial assessment”, Regionl 45
https://ejalshakti.gov.in/jjmreport/JJMIndia.aspx (Accessed on
Science Policy and Practice, 2021, pp 1-21. 18th March, 2022).
The state of inequality in India report 80

Households (%)

13.39 100.00

Fig. 5.2 The map above shows the percentage of households with tap water supply (Source:
Ministry of Jal Shakti)
81 The state of inequality in India report

NFHS-4 NFHS-5

Andaman & Nicobar Islands


Andhra Pradesh
Arunachal Pradesh
Assam
Bihar
Chandigarh
Chhattisgarh
Dadar & Nagar Haveli
Delhi
Goa
Gujarat
Haryana
Himachal Pradesh
Jammu & Kashmir
Jharkhand
Karnataka
Kerala
Ladakh
Lakshadweep
Madhya Pradesh
Maharashtra
Manipur
Meghalaya
Mizoram
Nagaland
Odisha
Puducherry
Punjab
Rajasthan
Sikkim
Tamil Nadu
Telangana
Tripura
Uttarakhand
Uttar Pradesh
West Bengal
45% 50% 55% 60% 65% 70% 75% 80% 85% 90% 95% 100% 105%

Households with Access to Improved Drinking Water (%)

Fig. 5.3 The graph above shows the percentage of households with access to improved drinking
water (Source: NFHS 5 2019-21 and NFHS 4 2015-16)

Access to improved sanitation and hygiene remains, with the former having nearly
is vitally important for enhanced well- 65% of households with improved access
being and increased living standards in contrast with approximately 82% in
for populations. Improved sanitation urban areas. A tremendous stride towards
facilities are defined as flush to a piped improving access to toilet facilities has
sewer system, flush to a septic tank, also been made under the Swachh Bharat
flush to pit latrine, ventilated improved Mission – Gramin (SBMG), due to which
pit (VIP)/biogas latrine, pit latrine with massive progress is made towards putting
slab, composting toilet with exclusive an end to open defecation. Since the
household access. The 5th round of NFHS start of the program, there has been a
has depicted that 70.2% of households reported increase of 61.24% in the number
have access to improved sanitation of households with toilet facilities in rural
facilities which is a significant improvement areas. From 38.7% coverage in 2014, India
from a dismal 48.5% in 2015-16 (NFHS-4). has achieved 100% coverage in Individual
The gap between rural and urban areas Household Latrine (IHHL).46
46
https://sbm.gov.in/sbmreport/home.aspx (Accessed on 18th March, 2022).
The state of inequality in India report 82

Regarding electrification, 88% of the like Goa (96.5%), Telangana (91.8%),


population lived in households with Mizoram (83.8%), Andhra Pradesh (83.6%)
electricity in 2015-16. This number and Tamil Nadu (82.9%) have had the top
increased to 96.8% by 2019-21, with urban percentage in households using clean fuel
areas reporting 98.7% and the rural for cooking49 with huge improvement from
regions 96.8%.47 As part of Sustainable the NFHS-4. There has been a remarkable
Development Goal 7 – “Affordable and improvement at the All-India level from
Clean Energy”, 99.99 % of households are 43.8% in 2015-16 to 58.6% in 2019-21.
electrified as per the SDG India Index. As However, the performance of rural areas
many as 92.02% of LPG+PNG connections still remains disappointing at 43.2%, with a
against the number of households were huge gap between rural and urban (89.7%)
made.48 As per NFHS 5 (2019-20), States access and usage to clean cooking fuel.

NFHS-4 NFHS-5
Andaman & Nicobar Islands
Andhra Pradesh
Arunachal Pradesh
Assam
Bihar
Chandigarh
Chhattisgarh
Dadar & Nagar Haveli
Delhi
Goa
Gujarat
Haryana
Himachal Pradesh
Jammu & Kashmir
Jharkhand
Karnataka
Kerala
Ladakh
Lakshadweep
Madhya Pradesh
Maharashtra
Manipur
Meghalaya
Mizoram
Nagaland
Odisha
Puducherry
Punjab
Rajasthan
Sikkim
Tamil Nadu
Telangana
Tripura
Uttar Pradesh
Uttarakhand
West Bengal
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Households with Access to Improved Sanitation (%)

Fig. 5.4 The graph above shows the percentage of households with access to improved sanitation
(Source: NFHS 5 2019-21 and NFHS 4 2015-16)
47
NFHS-4 (2015-16) and NFHS-5 (2019-21).
48
https://sdgindiaindex.niti.gov.in/#/ranking (Accessed on 20th March, 2022).
49
Clean cooking fuel is defined as Electricity, LPG/natural gas and bio gas.
83 The state of inequality in India report

NFHS-4 NFHS-5

Andaman & Nicobar Islands


Andhra Pradesh
Arunachal Pradesh
Assam
Bihar
Chandigarh
Chhattisgarh
Dadar & Nagar Haveli
Delhi
Goa
Gujarat
Haryana
Himachal Pradesh
Jammu & Kashmir
Jharkhand
Karnataka
Kerala
Ladakh
Lakshadweep
Madhya Pradesh
Maharashtra
Manipur
Meghalaya
Mizoram
Nagaland
Odisha
Puducherry
Punjab
Rajasthan
Sikkim
Tamil Nadu
Telangana
Tripura
Uttar Pradesh
Uttarakhand
West Bengal
50% 55% 60% 65% 70% 75% 80% 85% 90% 95% 100% 105%

Electrification (%)
Fig. 5.5 The figure above shows the percentage of households with electricity (Source: NFHS 5
2019-21 and NFHS 4 2015-16)

Additionally, most of the State and Union hypothyroidism and goitre, with a daily
Territories saw an improvement in kitchen recommended intake of 110-150 mcg
requirements like iodised salt usage. for adults. Tamil Nadu (92%), Meghalaya
From 93.1% in NFHS-4, it has increased (90.6%), and Andhra Pradesh (83.1%) are the
to 94.3% at the All-India level. Iodine is states with the lowest presence of iodised
an essential micronutrient important for salt among the household sampled.
growth and avoiding health ailments like
The state of inequality in India report 84

NFHS-4 NFHS-5
98% 99% 99%
91% 90%
81% 82%
70%
Urban (%)

96% 95%
83% 89%

65%
Rural (%)

37% 43%
24%

97% 96%
88% 90%
70%
59%
48%
Total (%)

44%

Electricity Improved Improved drinking Clean


access sanitation water access cooking fuel
access
Fig. 5.6 shows the percentage of households with access to clean cooking fuel, electricity,
improved drinking water and improved sanitation (Source: NFHS 5 2019-21 and NFHS 4 2015-16)

Empowering Indian Households

Reducing gender gaps is vital for reducing that currently, 88.7% of married
poverty overall and promoting equity women usually participates in three
and equality. Targeted efforts toward household decisions which is an
equitable development and integration improvement from 84% in NFHS-4.
require a strategic intervention at the These decisions are classified as
household level itself. To this end, India decisions about healthcare for herself,
has done extensive work to make making major household purchases
households resilient to sudden socio- and visits to family or relatives. While
economic shocks and empower women these decisions do not indicate the
to enhance their access and usage of major household decisions related to
resources. financial expenditure, it is critical to
our understanding of their position
The results of NFHS-5 have shown in the households. Similarly, 78.6%
85 The state of inequality in India report

of women have a bank or savings (46.6%) in rural India.


account for their personal use.
This is a boost from a disappointing Land ownership or house ownership
53% of NFHS-4. In rural India, 77.4% of (jointly or alone) also remains excessively
women have a bank account. At the low, especially in urban areas. A meagre
same time, the coverage of mobile 38.3% of women in urban spaces own
phone access remains low, with only a house or land compared to 45.7% of
54% women having mobile phones at women in rural India.
the all-India level and less than 50%

NFHS-4 NFHS-5
86% 91%
81%
69%
61% 62%
Urban (%)

35% 38%

83% 88%
77%

49%
Rural (%)

47% 46%
40%
37%

84% 89%
79%

53% 54%
Total (%)

46%
38% 43%

Household Bank and Mobile Own house/


decisions saving account phones land (joint/
alone)

Fig. 5.7 the graphs above represent the position of women in households as per their bank
accounts, household decision making, access to mobile phones and ownership of houses and
lands (Source: NFHS 5 2019-21 and NFHS 4 2015-16)
The state of inequality in India report 86

Box 5.1

JAM (Jan Dhan-Aadhar-Mobile) Trinity


The JAM Trinity is an initiative by the government of India to link Jan Dhan Accounts,
Mobile numbers and Aadhar cards of the population. Proposed in the Economic Survey
2014-15, the initiative aims to promote direct benefit transfers to the beneficiaries and
plug leakages in the subsidies without reducing the subsidies itself. The two components-
mobile numbers and post office accounts as alternative financial delivery mechanisms
to make sure that benefits reach the poor households seamlessly. Till now, 19.72 crore
bank accounts have been opened and linked with various direct cash transfer schemes
(like PAHAL Yojana) and insurance coverages like Pradhan Mantri Suraksha Bima Yojana,
Pradhan Mantri Jivan Jyoti Bima Yojana and Atal Pension Yojana. The JAM Trinity has
removed administrative bottlenecks by linking mobile numbers with Aadhar cards and
Jan Dhan accounts making sure that even the poor households are integrated in the
digital leap that India has taken making sure maximum technology penetration among
the masses and last mile delivery of all benefits to the poorest and geographically
isolated households.

Insights

The results have shown us that it is the result of concerted efforts towards
improvements have been made in equitable access to facilities necessary
enhancing people’s living standards across for everyday functioning that the gap
the expansive indicators- sanitation, between rural and urban is reducing.
water, electrification and household While the schemes and initiatives should
wealth. Additionally, targeted efforts be more responsive to gender inequities,
towards providing safe drinking water the significant improvement in the
and sanitation facilities have contributed consolidated position of women in terms
to providing a dignified living to the most of access, usage and ownership over
marginalised. This has a direct impact the periods of the surveys cannot be
on reducing capability deprivation and underplayed. Technological integration,
making sure socio-economic inequities financial independence and increasing
restrict no individual or community to lead disposable incomes are the bedrock of
a dignified and inclusive life. overall empowerment across sections
of society. In this respect, leveraging the
Proactive initiatives like Jal Jeevan Mission power of JAM Trinity has ensured maximum
and Swacch Bharat Mission-Gramin have coverage and made fundamental
ensured that households do not have behavioural changes in the direction of
to make consumption choices between financial literacy. Bottom-up interventions
necessities at the cost of their self-respect. right at the household level ensure
The dearth of these “bare necessities” that temporal and structural causes of
makes the experiences of living with inequality and inequity are taken care of.
inequities more difficult. More importantly,
87 The state of inequality in India report
The state of inequality in India report 88

06
89 The state of inequality in India report

Conclusion and
Recommendations
The State of Inequality in India Report seeks to
present the scenario pertaining to economic and
socio-economic inequities in the country across
indicators like income profile, labour market, health,
education, and household characteristics that are
multi-faceted in nature. The concentration of these
kinds of inequities in either of the areas magnifies the
overall experience of living with deprivations.

It is challenging to arrive at a singular in a society needs to pay attention


definition of a deprived household to every sub-structure (from the
or vulnerability, but we can assume labour market to the service sector)
that a household devoid of essential in the larger structure of inequality.
means of survival or not having the This would also mean evaluating
purchasing capacity to access life- how a radical life shock like loss of
saving or life-nurturing services can job or health scare impacts the
be called a deprived household. other dimensions of their lives –
This deprivation has both social i.e. education for learners in the
and economic roots that reinforce household to changes in expenditure
oppressive structures that limit an patterns. In other words, how easily a
individual’s (and by extension, the household is pushed into a situation
whole society) capabilities and of making choices among basic
liberties. Economic factors like loss necessities determines the extent
of job, informalisation of work that of inequality in the country. In this
takes away worker benefits, low respect, it is pertinent to make sure
incomes and having no assets or that these sub-structures are not only
wealth transcend into the social accessible but affordable as well,
lives by restricting their mobility and leading to equitable distribution of
trapping the households in a vicious resources throughout.
circle of dearth and inequities. Thus,
a complete assessment of inequality
The state of inequality in India report 90

In terms of income inequality, the income system with the prime focus on rural
concentration among the top-few integration with the peripheral health
skews the distribution of income among infrastructure. The concerted investment
the earning population leading to into this sector has also led to an increase
inconsistency in the distribution of gains. in child and maternal healthcare (higher
life expectancy rate and lower infant
The income disparity is more pronounced mortality rate). However, the challenges
as the distance between the top-most of nutritional deprivation, triggering
and the bottom-most is only increasing. hunger insecurity, remain (more so among
children than adults), affecting their
Even though it is difficult to trace the physical and cognitive development.
movement from one income class to This nutrient deficiency has also given
another due to the absence of class rise to public health crises like anaemia.
definitions, the share held by the Top Likewise, education is another sector
1% is only increasing, thereby further where investment has been brought to
marginalising the poor. In this context, fruition (despite the marginal reduction in
low incomes need to be viewed in the expenditure), with schools becoming more
context of multi-dimensional deprivations. infrastructurally developed.
Similarly, the positive changes in the
labour market, like the expansion of the Making schools infrastructurally sound,
working-age population, have created directly impacts high enrolment rates and
a massive potential for exploiting the low dropout rates.
demographic dividend to increase the
country’s economic productivity. However, This influences the inequality discourse
this potential rests on critical interventions as accessible and affordable education
like creating new jobs, integrating the leads upward mobility (even coming out
informal sector with the formal sector, and of the poverty cycle). Education corrects
empowering the female labour force to inequality as a long-term measure by
increase their participation rate. The latter making structural changes in society.
also rests on the shift in the mindset of the At a household level, the availability of
society to view women as the secondary essential commodities and resources
“bread-earners”. responsible for the day-to-day functioning
of a healthy household leads to capability
These economic variables translate enhancement starting from the grass-root
into the heightening of socio-economic level. In part, this has been a result of the
inequities where access to health, government’s targeted efforts in the areas
education and household commodities of water availability and sanitation that
is impacted in the face of low earnings. have raised the standard of living and
Concerning the health infrastructure, there reduced the contraction of diseases and
has been considerable improvement infection due to contaminated water and
in solidifying the primary health care polluted surroundings.
91 The state of inequality in India report

Recommendations

01 04
The most important Most importantly,
aspect of measuring the government
poverty in a multi- must allocate more
dimensional context requires percentage of the expenditure
mapping the mobility in and towards social services and the
out of poverty. Therefore, it is social sector to make the most-
recommended to establish airtight vulnerable population resilient
slabs that make class-based to sudden shocks and stop their
distinctions clear to trace movement descent into poverty.
within a class and in and out of
the class. Additionally, this will help
define the middle-class income

05
share and target beneficiaries of Equitable access to
social protection schemes that education and creation
constitute the lower-middle-class, of more jobs with long-
lower-class, and those below the term growth are vital for triggering
poverty line. an upward mobility among the poor.

02
Raising minimum
income and introducing

06
universal basic income The government
are some of the recommendations should also encourage
that can reduce the income gap regular exercises like
and equal distribution of earnings in the Foundational Learning and
the labour market. Numeracy Index and Ease of living
Index for the purpose of stock taking
of the extent vulnerability among

03 Looking at the
difference between
the labour force
households and how to promote
their overall well-being.

participation rate in rural and urban


areas, it is our understanding that
the urban equivalent of schemes like
MGNREGS that are demand-based
and offer guaranteed employment
should be introduced so that the
surplus-labour is rehabilitated.
The state of inequality in India report 92

The Way Forward

The State of Inequality in India Report has improved or not. Assessments of these
aims to contribute to more informed policy kinds help establish what proportion of
debates and discussions by evaluating the population can live decently and what
variables that reflect the causal effects of could be the role of all tiers of government
inequality as well as its manifestations in to increase the quality of living.
social life. The report provides a descriptive
and analytical study of factors that trigger The information available on inequality,
inequality, areas requiring thorough the kind that this report seeks to bring
sectoral transformation, and ways to out, will help formulate reform strategies,
improve standards and ease of living. a roadmap for social progress and shared
Inequality is also closely tied to social and prosperity. It will help determine the nature
economic exclusion, which sustains an of change required for the reduction
ecosystem of impoverishment. Therefore, of inequality and poverty as well as
there is an urgent need to develop a sustained growth of the country. Moreover,
comprehensive understanding of lived information transparency with the public
experiences of inequality which translates on matters of such intense importance as
into multidimensional deprivations. In this inequality leads to proactive involvement
light, the objective is to extend the scope of all stakeholders resulting in innovative
of conversation from only economic basis and sustainable solutions. This cannot
of inequality to socio-economic facets by be achieved if debates and discussions
providing information on developments take place in echo chambers. The State of
in the context of health and education Inequality in India Report, thus brings the
sectors and household empowerment conversation to the public and encourages
along with labour market and income the governmental institutions to foster
dynamics. public deliberation on the matter. India
has always been able to translate its
Additionally, the emphasis on the challenges into unique opportunities. With
interaction between social and economic continued and determined intervention in
aspects of inequality helps us holistically the field of reducing inequality, the future
drive policy action through social ahead is full of potential with equitable
protection frameworks. It raises pertinent development and inclusive growth. There
issues related to ease of living, and sectoral can never be one understanding of
outcomes, especially learning outcomes, inequality, nor a single solution. Therefore,
as the importance of education in bringing consistent and comprehensive efforts that
structural shifts in patterns of inequality intend to break the inequality trap through
cannot be understated. This report should structural means should be the basis of all
engage in conversations that develop policies and reforms ahead.
methodological frameworks to assess the
Ease of Living to ascertain if the overall
well-being of the citizens of the country
93 The state of inequality in India report

Appendix I

Details the various social protection schemes in the country –

Education National The National Apprenticeship Training Scheme


and Skill Apprenticeship in India is a one-year programme equipping
Development Training Scheme technically qualified youth with practical
knowledge and skills required in their field of
work. The Apprentices are imparted training by
the organisations at their place of work. Trained
Managers with well-developed training modules
ensure that Apprentices learn the job quickly and
competently.

Academic Bank of The scheme would digitally store the academic


Credit credits earned from various recognised Higher
Educational Institutions (HEI) such that credits so
earned can be accounted for award of degree
by any given HEI. Appropriate amendments in
regulations by University Grants Commission (UGC)
have been affected to facilitate multiple entry/exit
in academic programmes at HEIs and offering of
offshore courses by Institutions of Eminence (IOE).

e-PGPathshala e-PG Pathshala is an initiative of the MHRD under


its National Mission on Education through ICT (NME-
ICT) being executed by the UGC.

Unnat Bharat The Mission of Unnat Bharat Abhiyan is to enable


Abhiyan higher educational institutions to work with the
people of rural India in identifying development
challenges and evolving appropriate solutions for
accelerating sustainable growth. It also aims to
create a virtuous cycle between society and an
inclusive academic system by providing knowledge
and practices for emerging professions and to
upgrade the capabilities of both the public and the
private sectors in responding to the development
needs of rural India.
The state of inequality in India report 94

Pradhan Mantri Pradhan Mantri Kaushal Vikas Yojana (PMKVY) is the


Kaushal Vikas Yojana flagship scheme of the Ministry of Skill Development
& Entrepreneurship (MSDE) implemented by the
National Skill Development Corporation. The
objective of this Skill Certification Scheme is to
enable a large number of Indian youth to take up
industry-relevant skill training that will help them in
securing a better livelihood. Individuals with prior
learning experience or skills will also be assessed
and certified under the Recognition of Prior
Learning (RPL).

Jan Shikshan Jan Shikshan Sansthan aims to provide vocational


Sansthan (JSS) training to non-literates, neo-literates as well as
Scheme school drop-outs in rural regions by identifying skills
that have a relevant market in that region. Over
two-thirds of India’s population comprises rural
citizens. The objective of JSS is to uplift this rural
population economically by imparting essential
skills training, thereby enabling local trades to grow
and creating new opportunities for the natives of
the region.

Sarva Shiksha Sarva Shiksha Abhiyaan, or SSA, is an Indian


Abhiyaan Government programme aimed at the
universalisation of Elementary education “in a
time bound manner”, the 86th Amendment to the
Constitution of India making free and compulsory
education to children between the ages of 6 to
14 (estimated to be 206 million children in 2001) a
fundamental right (Article- 21A).

Rashtriya The Rashtriya Madhyamik Shiksha Abhiyan (RMSA)


Madhyamik Shiksha is a flagship scheme of Government of India, to
Abhiyan enhance access to secondary education and
improve its quality.
Rashtriya Madhyamik Shiksha Abhiyan (RMSA)
aims to increase the enrolment rate by providing
a secondary school within reasonable distance
of every home. It also aims to improve the quality
95 The state of inequality in India report

of secondary education by making all secondary


schools conform to prescribed norms, removing
gender, socio-economic and disability barriers,
and providing universal access to secondary level
education.

PM e-VIDYA The Government of India has launched the PM


eVIDYA program. Under this scheme, the top
hundred universities of the country will start
educating students through online education after
30th May 2020. PM eVIDYA will also be called a
one Nation digital platform. Other than that a TV
channel called one class one channel will also be
launched for students who are studying in class 1st
to 12th. For visually and hearing impaired students
the government will also do radio podcasts.

National Digital The National Digital Education Architecture


Education (NDEAR) is an architectural blueprint that aims
Architecture to facilitate achieving the goals laid out in the
National Education Policy, 2020 through a unified
digital infrastructure in the education ecosystem.
Simply put, the document states that under the
NDEAR framework, the government will play the role
of an enabler by providing a framework in which
technology can be built by the government, society
or market actors.

NIPUN Bharat Mission NIPUN Bharat Mission or National Initiative for


Proficiency in Reading with Understanding and
Numeracy is launched by the Education Ministry
of India under National Education Policy 2020.
This scheme ensures that every child in India gains
foundational numeracy and literacy by the end of
Grade 3.NIPUN Bharat focuses on transforming the
monotonous education system into an integrated,
enjoyable, all-inclusive and engaging.
The state of inequality in India report 96

Employment Aatmanirbhar Bharat ABRY was announced as a part of Aatmanirbhar


Rojgar Yojana (ABRY) Bharat 3.0 package to boost the economy,
increase the employment generation in post Covid
recovery phase and to incentivise creation of new
employment along with social security benefits and
restoration of loss of employment during COVID-19
pandemic.

MGNREGS The MGNREGS Act aims at enhancing the livelihood


security of people in rural areas by guaranteeing
hundred days of wage-employment in a financial
year to a rural household whose adult members
volunteer to do unskilled manual work.

The Deendayal Aajeevika - National Rural Livelihoods Mission


Antyodaya Yojana (NRLM) was launched by the Ministry of Rural
– National Rural Development (MoRD), Government of India in June
Livelihoods Mission 2011. Aided in part through investment support
(DAY-NRLM) by the World Bank, the Mission aims at creating
efficient and effective institutional platforms
of the rural poor, enabling them to increase
household income through sustainable livelihood
enhancements and improved access to financial
services.

Pradhan Mantri Pradhan Mantri Shram Yogi Maandhan is a


Shram Yogi Maan- government scheme meant for old age protection
Dhan (PM-SYM) and social security of Unorganised workers.
Yojana

National Pension The National Pension Scheme for Traders and Self
Scheme for Traders, Employed Persons Yojana (Pradhan Mantri Laghu
Shopkeepers and Vyapari Maan-dhan Yojana) is a pension scheme
Self-Employed for shopkeeper’s/ retail traders and self-employed
Persons persons for providing monthly minimum assured
pension of Rs 3000/- for the entry age group of 18-
40 years. It is a voluntary and contribution based
central sector scheme.
97 The state of inequality in India report

Health Ayushman Bharat Ayushman Bharat (AB) is an attempt to move


Health and Wellness from a selective approach to health care to
Centres (AB-HWCs) deliver comprehensive range of services spanning
preventive, promotive, curative, rehabilitative
and palliative care. It has two components which
are complementary to each other. Under its first
component, 1,50,000 Health & Wellness Centres
(HWCs) will be created to deliver Comprehensive
Primary Health Care, that is universal and free to
users, with a focus on wellness and the delivery
of an expanded range of services closer to the
community. The second component is the Pradhan
Mantri Jan Arogya Yojana (PM-JAY) which provides
health insurance cover of Rs. 5 lakhs per year
to over 10 crore poor and vulnerable families for
seeking secondary and tertiary care.

Ayushman Bharat Ayushman Bharat – Pradhan Mantri Jan Arogya


Pradhan Mantri Jan Yojana (AB-PMJAY) is the flagship scheme of
Arogya Yojana (AB- Government of India that provides a cover of up
PMJAY) to Rs. 5 lacs per family per year, for secondary and
tertiary care hospitalisation to over 10.74 crore
vulnerable entitled families (approximately 50 crore
beneficiaries).

PM-Ayushman Mission (PM-ABHIM), is envisaged to develop two


Bharat Health self-contained Container Based Mobile Hospitals
Infrastructure Mission as a part of Strengthening Disaster and Epidemic
(PM-ABHIM) Preparedness. These can be deployed at a
short notice, during emergencies such as natural
calamities or disasters and epidemic outbreaks,
as per the needs of the country. Government of
India is developing critical care hospital blocks in
602 districts under PM Ayushman Bharat Health
Infrastructure Mission (PM-ABHIM).

Ayushman Bharat The Ayushman Bharat Digital Mission (ABDM) aims


Digital Mission to develop the backbone necessary to support
(ABDM) the integrated digital health infrastructure of the
country. It will bridge the existing gap amongst
different stakeholders of Healthcare ecosystem
through digital highways.
The state of inequality in India report 98

e-Sanjeevani The Union Ministry of Health and Family Welfare


had conceptualised eSanjeevani – a doctor to
doctor telemedicine platform in November 2019 for
implementation at 1,55,000 Health and Wellness
Centres under Govt. of India’s Ayushman Bharat
Scheme in a Hub & Spokes model. Owing to the
COVID-19 pandemic in March 2020, as OPDs
across the country were closed, the Union Health
Ministry ensured a rapid development and roll out
of this initiative in collaboration with The Centre for
Development of Advanced Computing (Mohali).

Drinking-Water, Jal Jeevan Mission Jal Jeevan Mission, is envisioned to provide


Sanitation and (JJM) safe and adequate drinking water through
Safe Fuel individual household tap connections by 2024 to
all households in rural India. The programme will
also implement source sustainability measures
as mandatory elements, such as recharge and
reuse through grey water management, water
conservation, rain water harvesting. The Jal Jeevan
Mission will be based on a community approach
to water and will include extensive Information,
Education and communication as a key component
of the mission.

Swachh Bharat To accelerate the efforts to achieve universal


Mission (Grameen) sanitation coverage and to put the focus on
[SBM-G] sanitation, the Prime Minister of India had launched
the Swachh Bharat Mission on 2nd October 2014.
Under the mission, all villages, Gram Panchayats,
Districts, States and Union Territories in India
declared themselves “open-defecation free” (ODF)
by 2 October 2019, the 150th birth anniversary of
Mahatma Gandhi, by constructing over 100 million
toilets in rural India.

Pradhan Mantri Pradhan Mantri Ujjwala Yojana (PMUY) aims to


Ujjwala Yojana safeguard the health of women & children by
(PMUY) providing them with a clean cooking fuel – LPG,
so that they don’t have to compromise their
health in smoky kitchens or wander in unsafe
99 The state of inequality in India report

areas collecting firewood. Pradhan Mantri Ujjwala


Yojana was launched by Hon’ble Prime Minister
Shri Narendra Modi on May 1st, 2016 in Ballia, Uttar
Pradesh. Under this scheme, 5 Cr LPG connections
will be provided to BPL families with a support of
Rs.1600 per connection in the next 3 years. Ensuring
women’s empowerment, especially in rural India, the
connections will be issued in the name of women of
the households.

Housing and Pradhan Mantri Pradhan Mantri Awas Yojana – Urban (PMAY-U),
Infrastructure Awaas Yojana- a flagship Mission of Government of India being
Gramin (PMAY-G) implemented by Ministry of Housing and Urban
Affairs (MoHUA), was launched on 25th June 2015.
The Mission addresses urban housing shortage
among the EWS/LIG and MIG categories including
the slum dwellers by ensuring a pucca house to all
eligible urban households

Pradhan Mantri The Pradhan Mantri Gram Sadak Yojana (PMGSY),


Gram Sadak Yojana was launched by the Govt. of India to provide
(PMGSY) connectivity to unconnected Habitations as part
of a poverty reduction strategy. Govt. of India is
endeavoring to set high and uniform technical and
management standards and facilitating policy
development and planning at State level in order to
ensure sustainable management of the rural roads
network.

Pradhan Mantri Pradhan Mantri Sahaj Bijli Har Ghar Yojana -


Sahaj Bijli Saubhagya is to provide energy access to all by
Har Ghar Yojana last mile connectivity and electricity connections to
all remaining un-electrified households in rural as
well as urban areas to achieve universal household
electrification in the country.

Unnat Jyoti by The Unnat Jyoti by Affordable LEDs for All was
Affordable launched in 2015 with a target of replacing 77cr
LEDs for All (UJALA) incandescent lamps with LED bulbs. To nullify the
high-cost of LEDs that acted as a barrier previously
in adoption of energy efficient systems, the scheme
The state of inequality in India report 100

was implemented to set up phase wise LED


distribution across the nation to provide people
with affordable LED bulbs and energy efficient
appliances. The objective is to promote efficient
lighting, enhance awareness on using efficient
equipment that will reduce electricity bills and
preserve the environment.

Nutrition POSHAN Abhiyaan The Prime Minister’s Overarching Scheme for


Holistic Nutrition or POSHAN Abhiyaan or National
Nutrition Mission, is Government of India’s flagship
programme to improve nutritional outcomes for
children, pregnant women and lactating mothers.
The POSHAN Abhiyaan directs the attention of the
country towards the problem of malnutrition and
address it in a mission-mode.

Anaemia Mukt The Anaemia Mukt Bharat- intensified Iron-


Bharat plus Initiative aims to strengthen the existing
mechanisms and foster newer strategies for
tackling anaemia. It focuses on six target
beneficiary groups, through six interventions and six
institutional mechanisms to achieve the envisaged
target under the POSHAN Abhiyan.
101 The state of inequality in India report

Bibliography:

Banerjee, Abhijit, Bardhan, Pranab et al. (eds.). Poverty and Income Distribution in India.
New Delhi: Juggernaut. 2017.
Bhalla, Surjit, Karan Bhasin and Arvind Virmani, “Pandemic, Poverty and Inequality:
Evidence from India” (Working Paper of IMF), 2022.
Chancel, Lucas and Piketty, Thomas. “Indian Income Inequality, 1922-2015: From British Raj
to Billionaire Raj?”, The Review of Income and Wealth, 65(1): 2019, 33-62.
EAC-PM & Institute for Competitiveness. State of Foundational Literacy and Numeracy in
India. New Delhi. 2021.
Ghosh, Pritam et al, “Water, Sanitation, and Hygiene (WASH) poverty in India: A district-
level geospatial assessment”, Regionl Science Policy and Practice. 2021
H.S. Shergill, “Rural–Urban Disparity in the Standard of Living across States of India A
Preliminary Estimate”, Economic and Political Weekly, 56( 45-46): 2021, pp 44-50.
International Institute for Population Sciences. National Family Health Survey (NFHS-4),
2015-16. Mumbai. 2017.
International Institute for Population Sciences. National Family Health Survey (NFHS-5),
2019-21. Mumbai. 2021.
Mehta, Balwant Singh and Sarkar, Sandip. “Income Inequality in India: Pre-and Post-
Reform Periods”, Economic and Political Weekly, 45(37): 2010, 45-55.
Ministry of Finance, Government of India. Economic Survey 2016-17. New Delhi. 2017.
Ministry of Finance, Government of India. Economic Survey 2017-18. New Delhi. 2018.
Ministry of Finance, Government of India. Economic Survey 2018-19. New Delhi. 2019.
Ministry of Finance, Government of India. Economic Survey 2019-20. New Delhi. 2020.
Ministry of Finance, Government of India. Economic Survey 2020-21. New Delhi. 2021.
Ministry of Finance, Government of India. Economic Survey 2021-22. New Delhi. 2022.
Ministry of Statistics and Programme Implementation, Periodic Labour Force Participation
Rate 2017-18. New Delhi 2018.
Ministry of Statistics and Programme Implementation, Periodic Labour Force Participation
Rate 2017-18. New Delhi 2019.
Ministry of Statistics and Programme Implementation, Periodic Labour Force Participation
Rate 2017-18. New Delhi 2021.
National Sample Survey Office, Ministry of Statistics. National Sample Survey (NSS). New
Delhi. 2016.
Sutirtha Sinha Roy & Roy van der Weide, “Poverty in India Has Declined over the Last
Decade But Not As Much As Previously Thought”, Policy Research Working Paper, World
Bank. 2022.
Telecom Regulatory Authority of India. TRAI Annual Report 2019-20. New Delhi. 2020.
U.S. Mishra and William Joe, “Household Assets and Wealth Quintiles, India 2006–16
Insights on Economic Inequalities”, Economic and Politicly Weekly, 55(6): 2020, pp 77-82.
The state of inequality in India report 102
103 The state of inequality in India report
The state of inequality in India report 104

Institute for Competitiveness, India (IFC) is the Indian knot in the global network of
the Institute for Strategy and Competitiveness at Harvard Business School. IFC India
is an international initiative dedicated to the enlarging and purposeful dissemination
of the body of research and knowledge on competition and strategy, as pioneered
over the last 25 years by Professor Michael Porter of the Institute for Strategy and
Competitiveness at Harvard Business School. Institute for Competitiveness, India
conducts and supports indigenous research, offers academic and executive courses,
provides advisory services to the corporate and government sectors, and organises
events. The institute studies competition and its implications for company strategy;
the competitiveness of nations, regions, and cities and thus, generates guidelines for
businesses and those in governance and suggests and provides solutions to socio-
economic problems.

www.competitiveness.in

The Institute for Competitiveness


U24/8, U-24 Road, U Block, DLF Phase 3, Sector 24, Gurugram, Haryana 122022
[email protected] | www.competitiveness.in

You might also like