India Among Top Countries With High Income, Wealth Inequality: UNDP

Utkarsh Classes Last Updated 31-01-2024

India Among Top Countries With High Income, Wealth Inequality: UNDP

Report 4 min read

The United Nations Development Program (UNDP) said in a recently released report that India has emerged as one of the top countries with high income and wealth inequality. According to this report, the share of the population living in multidimensional poverty has fallen from 25 to 15 percent between 2015-16 and 2019-21.

The ‘2024 Asia-Pacific Human Development Report’, released on 6 November 2023, presents a sobering picture of long-term progress as well as persistent inequality and widespread disruption.

Per capita income in India has risen:

In India, between 2000 and 2022, per capita income is expected to increase from US$442 to US$2,389.
Whereas, between 2004 and 2019, the poverty rate (based on the international poverty measure of US$2.15 per day) fell from 40 to 10 percent.
The new report, titled 'Making our future: new directions for human development in Asia and the Pacific', argues that unfulfilled aspirations, rising human insecurity and A potentially more turbulent future creates an urgent need for change.

Key points of the report:

India has been included in the top 10 countries of the world, where the income of the people has increased but it has not increased equally for all sections.
The top decile possesses 50% of the nation's wealth.
The number of people living below the poverty line in the country has decreased from 25 percent in 2015-16 to 15 percent during 2019-21.
A staggering 18.50 crore people in the country endure poverty, with incomes less than $2.15, equivalent to 180 rupees.
There are some people who are just above the poverty line. There is a risk of individuals, such as women, unorganized sector laborers, and inter-state migrants, slipping back into poverty.
The population of the middle class earning 12 to 120 US dollars per day has increased in India.
India accounts for 24% of global middle-class growth, which is equivalent to a population of 192 million.

Prioritizing investment in human development:

According to UNDP Regional Director Kanni Vignarajah, the report emphasizes that to overcome current challenges, we need to prioritize investment in human development. Every nation must devise its unique approach.
To enact this transformation, the report advocates three novel paths in human development.
- Put people at the center of development,
- realign development strategies to create more jobs and respect the environment, and
- Finally, a sustained focus on reform and the politics of science.

Asia-Pacific region in the report:

According to the report, the Asia-Pacific region will contribute two-thirds of global economic growth this year, but income and wealth inequalities are growing, especially in South Asia, where the richest 10 percent control half of total income.
The report said more than 185 million people are living in extreme poverty – earning less than US$2.15 per day.