Recommending new reform in the Economic Policy of India, the Economic Survey of India has stated that economic growth will be able to play a much impactful part if the emphasis is put on economic growth, against utilizing more resources on an effort to fight inequality.
It said that the gap between the rich and the poor has a better chance of becoming short if the economy has a bigger capacity and that true economic growth in India’s opportunity to help alleviate poverty.
The survey stated, “Across Indian states, it is observed that both inequality and per-capita income correlate similarly with socio-economic outcomes. In these figures, inequality across Indian states is measured as the Gini coefficient of consumption; this is done through correlation of inequality and per-capita income with a range of socio-economic indicators, including health, education, life expectancy, infant mortality, birth and death rates, fertility rates, crime, drug usage, and mental health.”
Commenting on how income disparity affects millions of poor in the country it said, “inequality of income does not reflect the true inequality that individuals and households encounter as consumers.”
The survey takes the case of capitalistic economic structures and says that in India, per-capita income and inequality have become a synthesized issue, and the most efficient way to battle it will be if the complete value, the whole economy, is bigger.
“The more the wealth, the more it can be distributed,” the survey suggests.
