The Gini Index’s Dynamics as a Reflection of India’s Income Inequality

Abstract

This paper aims to understand the income inequality trends in India using the Gini Index over time. The study makes a case for India’s economic expansion despite the existing social classes and efforts to clarify the role of the Gini Index in addressing this multifaceted phenomenon. It examines the historical context of income disparity in India. The research methodology entails the analysis of secondary data and pre-existing studies regarding income distribution and inequality in India. This encompasses official government publications, surveys, databases, scholarly journals, and studies. The research employs data from esteemed sources such as the World Bank, IMF, and Indian governmental statistical agencies, concentrating on household surveys and socioeconomic metrics. The India Human Development Survey is a principal data source, offering extensive information on household income, education, and socioeconomic attributes. The results demonstrate the variable nature of India’s Gini Index, highlighting the relationship among social programs, structural reforms, and economic growth. Post-independence policies initially maintained a stable Gini Index; however, economic liberalization increased income inequality, concentrating wealth among the wealthy. The study examines the effects of geographical disparities, the rural-urban split, and various socioeconomic determinants on income inequality, providing insights into the obstacles and potential remedies for attaining a more equitable income distribution in India.