SBI Ecowrap report on Income Inequality
The State Bank of India published its Ecowrap report on Income Inequality in India.
Findings of the report
- According to Ecowrap report, income inequality in India has been declining since Financial Year 2017.
- India also did well during covid-19 pandemic, with respect to navigating income shocks across population.
- There is a progressive growth in output, as proxied by GSDP (gross state domestic product). Thus, it is clear that, fruits of such growth have reverberated into an inclusive growth.
- India has also done well during covid-19 pandemic, in terms of navigating income shocks across the population.
- Average income of states reached to Rs 1,74,024 in 2021-22, from Rs 18,118 in 2001-02. Thus, inequality has significantly moderated in states.
- Coefficient of variation of per capita income decreased to 67 per cent in 2021-22, from 76 per cent in 2011-12.
Ratio of per capita income of states
According to report, the ratio of per capita income of state from average showed similar pattern over the years. Sikkim and Goa led the pack of states, with a ratio of exceeding 3. This indicates that, average per capita income of Sikkim & Goa was three times more than average income of all the states put together.” States like Bihar, Jharkhand, Chhattisgarh, Rajasthan, Madhya Pradesh, and Uttar Pradesh continue to be at the bottom. As per report, around half of the total tax transfers were based on equity consideration.
Gap between GDP and GNI
Report noted that, gap between Gross Domestic Product (GDP) and Gross National Income (GNI) or statistical discrepancy, is 1.3 per cent. The gap indicates that, country is net receivable or net payable. During financial year 2012 to financial year 2020, average gap between GDP and GNI was 1.1 per cent. The gap increased marginally in financial year 2021 to 1.3 per cent and then to 1.6 per cent in Financial Year 2022.
Month: Current Affairs - June, 2022
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