Report On State of Inequality-In India Web Version
Report On State of Inequality-In India Web Version
THE STATE OF
INEQUALITY
IN INDIA REPORT
Authors
Jessica Duggal
Researcher, Institute for Competitiveness
Designed By
Content
Preface 05
Executive Summary 09
Chapter 1: Introduction 12
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
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.
A multidimensional understanding
of poverty assesses the degree of
deprivation in terms of lack of basic
15 The state of inequality in India report
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
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
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
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
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
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.
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.
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
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
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
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)
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
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)
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
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
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
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)
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
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
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
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)
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
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.
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)
downloadfile?filepath=publications/Rural-Health-Statistics/
RHS%202019-20.pdf (Accessed on 20th March 2022)
41 The state of inequality in India report
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
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
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
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
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)
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
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
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.
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
Goa
Puducherry
Tamil Nadu
Lakshadweep
Andhra Pradesh
Kerala
Haryana
Telangana
Chandigarh
Maharashtra
Gujarat
Odisha
Rajasthan
Delhi
Himanchal Pradesh
Karnataka
Punjab
Madhya Pradesh
Chhattisgarh
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
Goa
Kerala
Tamil Nadu
Puducherry
Lakshadweep
Andhra Pradesh
Chandigarh
Gujarat
Odisha
Telangana
Karnataka
Himanchal Pradesh
Punjab
Maharashtra
Delhi
Rajasthan
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 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.
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
Arunachal Pradesh
Assam
Bihar
Chandigarh
Chhattisgarh
Dadra & Nagar Haveli
and Daman & Diu
Delhi
Goa
Gujarat
Haryana
Himanchal Pradesh
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
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
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
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.
NFHS-4 NFHS-5
Percentage of Anaemic Women (15-49 Years)
Bihar
Ladakh
Gujarat
West Bengal
Odisha
Tripura
Haryana
Assam
Andhra Pradesh
Telangana
Madhya Pradesh
Chhattisgarh
Punjab
Tamil Nadu
Uttarakhand
Rajasthan
Uttar Pradesh
Karnataka
Maharashtra
Meghalaya
Puducherry
Himanchal Pradesh
Delhi
Sikkim
Mizoram
Manipur
Kerala
Arunachal Pradesh
Nagaland
Lakshadweep
Goa
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
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%
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
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
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.
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.
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
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)
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)
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
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
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
Uttarakhand
Himachal Pradesh
Meghalaya
Tripura
Manipur
Nagaland
Arunachal Pradesh
Mizoram
Goa
Puducherry
Chandigarh
Sikkim
Ladakh
Lakshadweep
0 1,00,00,000 2,00,00,000 3,00,00,000 4,00,00,000
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
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.
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.
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
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
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
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
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%
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
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%
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
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%
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
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.
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.
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
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
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
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
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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