Click Here For Written Result : Civil Services (Preliminary) Examination, 2024

News Excerpt: 

Inequality in India, transcends the dichotomy between the haves and the have-nots, as caste-based inequalities are among the defining features of the country’s socio economic framework.

More About News:

• A recent working paper of the World Inequality Lab has reignited discussion on the widening gap between the rich and poor.
• Metrics like the Gini coefficient and percentile ratio serve as crucial tools for assessing economic inequality.
• The paper explored the changes in consumption inequality from 2017-18 to 2022-23, overall and within social groups such as the Scheduled Tribes (ST), Scheduled Castes (SC), Other Backward Classes (OBC), and the General category using the Periodic Labour Force data.

Consumption Inequality across Social Group

• In 2022-23, STs accounted for 9% of the population, but their consumption share was only 7%.
• SCs constituted 20% of the population, but their consumption share was 16%.
• OBCs (43% of the population) had a consumption share of 41%, indicating relatively more conservative consumption patterns.
• Despite being 28% of the population, the General category commanded a 36% consumption share.
• These findings underscore the persistent disparities in the distribution of consumption across various social groups. 
• Despite minimal fluctuations over time, SCs and STs consistently lag behind people from the General and OBC categories.

 Consumption Patterns changes across Social Group

• From 2017-18 to 2022-23, consumption levels declined marginally for ST, SC, and OBC groups in the lowest 20% bracket.
• The General category saw a more pronounced consumption decrease among its poorest segment.
• Consumption increased slightly for all groups in the top 20%.
• The General category experienced a significant 10 percentage point surge in consumption among its wealthiest, implying a concentration of wealth among high-caste elites.
• The consumption disparity between the General category and other groups remains significant.

Changes in Income Inequality Measures

• The overall Gini coefficient decreased from 0.359 in 2017-18 to 0.309 in 2022-23, indicating a reduction in overall income inequality.
• The ST category's Gini coefficient decreased from 0.322 to 0.268, signaling improved consumption equity within the community.
• The SC category's Gini coefficient decreased from 0.312 to 0.273.
• The OBC category's Gini coefficient declined from 0.336 to 0.288.
• The General category saw the most substantial Gini reduction, from 0.379 to 0.306.

Way Forward

• Disparities in consumption patterns among different socioeconomic groups reflect potential disparities in income, access to resources, or purchasing power.
• Efforts should concentrate on augmenting income generation and consumption abilities among the lower income groups, particularly within the ST and SC communities. This is also essential for fostering social harmony and economic stability across society.
• Continued monitoring of trends and targeted interventions addressing specific socio-economic challenges faced by different groups are necessary to ensure sustained progress towards greater economic equity.