1. World Bank’s Key Findings (April 2025)
| Indicator | 2011-12 | 2022-23 | Significance |
|---|---|---|---|
| Gini Coefficient | 28.8 | 25.5 | Decline in consumption inequality |
| Extreme Poverty | ~27.8% | < 2% | Lifted 27 crore people out of poverty ($3/day PPP) |
| Dietary Shift | - | Per capita milk (+45%), eggs (+63%); fruits in 90% rural HHs | |
| Global Rank | - | Top 4 | Least unequal in consumption globally |
2. Methodology & Data Sources
- Primary Source: NSO’s HCES 2022-23 using MMRP (int’l best practice).
- MMRP Advantage: Captures both frequent (food, fuel) and infrequent (durables, clothing) expenses.
- Critics’ Argument: Underestimates elite consumption (e.g., luxury goods, services).
3. Consumption Inequality: Evidence of Decline
- Nutritional Uplift:
- Cereal share ↓ in food expenditure → Protein/fruits ↑ (esp. bottom 20%).
- Rural fruit consumption: 63.8% (2011) → 90% (2023).
- Asset Ownership:
- Mobile phones: 68% rural HHs (2023 vs. 25% in 2011).
- Two-wheelers: 43% rural HHs.
4. Income Inequality Debate: World Inequality Lab (WIL) Controversy
| WIL Claim | Counter-Argument |
|---|---|
| Top 10% holds 57.7% income (2022) | Based on tax data + outdated surveys |
| "70-80% HHs spend > income" | Economically illogical; distorts bottom 80% data |
| Rising inequality post-2017 | No empirical trend: Bottom 50% share ↑ (13.9%→15%), Top 10% ↓ (58.8%→57.7%) |
- Top 1% income share: Partly reflects better tax compliance (post-2016 anti-evasion measures).
5. Challenges & Way Forward
- Persistent Gaps:
- Rural-urban divide in education/healthcare quality.
- Skill disparities in knowledge economy.
- Policy Imperatives:
- Education: NEP 2020 implementation.
- Healthcare: PM-JAY expansion.
- Inclusion: Digital India, Skill India missions.