The Real Problem Ahead
Despite over 8% economic growth last fiscal year and a roaring stock market in Mumbai that is easily one of the world's most expensive, New Delhi still distributes free food grains to more than 800 million of its 1.4 billion people.
India has the second-highest number of billionaires in Asia but has tens of millions who depend on the government's 100 days minimum guaranteed wage employment programme, digging wells, building roads, and filling potholes for about $4 a day.
The Solution
"The economic and social freedoms are low owing to repressive public policies. This has to change. Unless it changes, inequality will rise further."
"Inequality is not something that will go away on its own ... it needs proactive government interventions."
My Take on this:
I agree that a consistent government intervention is required to reduce economic inequality. However, I'm also of the view that India does provide opportunities to everyone. In some communities (India is largest in variety), the mindset need to change. What I can see that people in these communities do not want to rise their economic status. There is nothing like an American Dream mindset in India.
People who are earning some good amounts through jobs are only happy to buy some life insurance policies in hope to double their money in 20 to 30 years. I'm not talking here some small numbers. It's extensive. In millions and billions.
For government, it's necessary to improve education budget which isn't even half of US in percentage terms acoording to respective GDP sizes. Unemployment is another issue that needs to rectified asap.