Big Question: Income and sectoral disparity in India can be visible with naked eyes. You only have to stand near any shopping mall of a big city. You can still see many rikshaw pullers huffing and puffing to get a customer and many luxury cars being driven inside or outside of the shopping mall!
The Indian economy is experiencing robust GDP growth, macroeconomic stability, and significant foreign capital inflows. However, there is a stark disparity in growth rates between the top 20% and the rest of the population. Despite a GDP growth rate of 8% for FY24, domestic consumption growth remains sluggish at 4%, highlighting income inequality as the wealthiest 20% accumulate 92% of the country's savings.
The remaining 80% is growing by about 4%. In fact, with real Sensex and gold price growth at 20% and 13%, respectively, and agriculture growth of 1.4%, it's possible that the top 5% of Indians are growing income at 15-18%, and the bottom 20% are not growing at all.
There is much anecdotal evidence to prove this. The FMCG sector is reporting low-volume growth. On the other hand, more 'premium' sectors like SUVs, modern retail and luxury goods are doing very well.
Great Article! The inequality and disparity are so much so that in front of a McD in my city. There are still beggars who are kids and old. I don't know if they are professional beggars but they're begging because they don't have means to earn. Unemployment is really kicking in. I see many people accepting to work in such conditions where Americans and Europeans wouldn't agree at all. Indians working six days a week is also more than developed nations.
reply
Thanks for the add up!
Yours is a true evaluation of the situation.
reply
My view is that it's much more productive to focus on whether or not the poorest people are becoming better off than focusing on inequality.
Celebrate prosperity and avoid a politics of envy.
reply
Most definitely, it's better to progress on the right path but the media is proactively posting such headings which can mislead to the wrong path!
reply
NBP for Q1 FY25 reached ₹89,726 crore, up from ₹73,004 crore in Q1 FY24, reflecting a 22.91% YoY increase. The June 2024 premium figure alone represents a 14.80% YoY rise. LIC's Performance: LIC reported a remarkable 28.11% growth in Q1 premiums, totaling ₹57,440.9 crore.
reply
Finally in INR!
reply
It is important to highlight that over the years in India, a super populated country with very old and conformist beliefs, there has always been this inequality both monetarily and socially... Currently with a very notable and ascending economic growth... these data or statistics are much more noticeable... In addition to the fact that India benefits from its geopolitical position territorially speaking and makes its trade much more fluid internationally.
reply
India is definitely benifiting on its geopolitical location. The inequality has also been reducing after 2014, tet a lot of work needs to be done.
reply
India is fucked beyond belief , few understand this
reply
stackers have outlawed this. turn on wild west mode in your /settings to see outlawed content.