Income Inequality in India By Henry bloom

(This specific graph has no specific relation to income inequality in India)

About 1/5 of India's population is poor, and 62% of these poor people live in the 7 low income states in India. These states house 45% of the population, yet they have significantly poorer inhabitants than most other states. 80% of India's poor live in rural areas, where the poverty rate is 25%. Urban areas on the other hand, have a 14% poverty rate, which is only 6% in cities with populations over 1 million. 34% of poor people in rural areas get most of their income from farm-related labor, which is a low-paying job that requires workers to work many long hours. Non-poor urban people tend to have salaried jobs, with 44% of them recieving their main income this way. This shows that the gap between the poor and non-poor is massive in money made and also the amount of work done to earn that money. Non-poor people spend 9% less of their money on food, and 4% less on fuel and light. This allows them to spend 5% more than poor people on their education and health, and 8% more on other items, which can cause the cycle to repeat itself as people that are born poor don't have enough education to get a high-paying job. 45% of poor people end up illiterate, while 37% of non-poor end up having education from secondary school or above, allowing for them to get good jobs as the poor are left to do manual labor.

The government has tried investing in employment and food programs, however over the past few years the funding for these projects has been reduced and caused tons of damage. The food program is so corrupt that rations set for poor people are being sold on the black market instead. Currently, fewer jobs are being created than before, which is causing the previous poverty decrease to slow down and become less significant. Despite the government creating a water conservation program, most villages still lack basic rainwater collection systems, which means that families still have to walk miles and wait for hours to collect water. Local mafias gain profits by charging people incredibly high rent for small plots of land. Luckily, the government has intervened and in camps that have undergone government intervention, the rent is either free or very low cost.

Castes have an effect on income inequality. The reason is that people lower castes are given lower paying, less important jobs that force them to stay in poverty. This section of Hindu legacy is bad because it traps people of the lowest caste in poverty which they have to pass on to their children.

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