World Bank Flags Widening Inequality in India Despite Nearly 500 Million People Escaping Poverty Worldwide

India, a neighbouring country, has set a record of great success in the global economy by lifting nearly 500 million people (about 496 million) above the poverty line. This comes from the World Bank’s recently published “India Poverty and Equity Brief” report. Alongside this huge success in cutting poverty, the report also shows that economic inequality in the country is getting deeper.

The report says the rate of extreme poverty in India fell sharply between the 2011 to 12 and 2023 to 24 fiscal years. By the international standard of 3 dollars a day, the extreme poverty rate dropped from 27.1 percent to just 2.6 percent. By the higher poverty line of 4.20 dollars, the rate fell from 57.7 percent to 16.1 percent. Experts believe strong government social safety programmes, food subsidies, more jobs and especially the rise in women’s participation in the workforce played a big part in this gain.

Even after this milestone in cutting poverty, worry about the gap between rich and poor in India’s economic and social structure has not gone away. Income and wealth inequality has grown step by step since the economy opened up in the 1990s. According to the World Inequality Report, India is one of the most unequal countries in the world today. The survey found that the median income of the top 10 percent of workers is about 13 times higher than that of the bottom 10 percent.

Analysts say how long India’s big gain will last depends on how many lasting jobs that suit workers are created in the less developed states. The world has praised the amazing speed of poverty reduction in such a short time. But if fair sharing of wealth is not ensured, this inequality could challenge the economic march of the country in the long run. Source: Al Jazeera.