Regional Imbalances And Income Inequalitiies In India: Steps taken by the Government to reduce it.
Regional imbalance is the disparity in economic and social development of two regions. One region/city/area is stronger than another region/city/area. Regions develop when investments are made to set up industries, service sectors, educational institutions, Health care facilities etc.
Income inequality is the unequal distribution of household or individual income across the various participants in an economy. Income inequality is often presented as the Percentage of income to a percentage of Population.
The problem of regional disparities is a global phenomenon and, for India, up to a great extent, an inheritance from the colonial past. For example, in India, the historical factors have guided the development of the port towns of Bombay, Madras, Calcutta and these three cities have in turn worked as nuclei for the development of Maharashtra and Gujarat, and Tamil Nadu and West Bengal respectively which are at present the most industrially advanced states in India. On the other hand, the areas having natural advantages in the form of mineral Resources, such as Bihar, Madhya Pradesh, Orissa and Rajasthan have lagged far behind in the process of Economic Development.
The most important indicator of regional imbalance and disparity among the different states of India is the difference in per capita state income figures. It is revealed from data in 2000-01, that the national Average per capita income in India was Rs. 10,254. The states whose per capita income figures were higher than this national average include Punjab, Goa, Haryana, Maharashtra, Gujarat, Karnataka, Tamil Nadu and Kerala.
Among these nine states, Punjab, Haryana, Maharashtra and Gujarat have attained a high degree of agricultural as well as industrial development. Although West Bengal and Karnataka attained per capita income higher than the all India average in 1094-95 but it started trailing behind the all India average in recent years due to its poor rate of economic Growth.
Various steps taken by Government to reduce it are:
1.Land reforms and Redistribution of Ceiling Surplus Land:
In India, income inequalities are mostly resulted from the concentration of agricultural land in the hands of a few big landlords. The Zamindary system prevailing in our country has created a system of absentee landlords in the farm sector who appropriated a major portion of the agricultural produce by exploiting the farmers.
After independence, various legislative measures were introduced for abolishing the system of absentee landlords and other intermediaries and imposing ceiling on land holdings.
- Resource Transfer and Backwardness:
While making necessary award, the Finance Commission in India has been giving due weightage to backwardness of a state as an important criteria for resource transfer from the centre to the states.
Declaration of Backward states and special category states by the government to reduce the regional imbalances.
Under the present system of federal fiscal transfer, the transfer of resources from the Centre to States includes central assistance for State Plans, Non plan transfer as per the recommendations of the Finance Commission, ad-hoc transfer, allocation of fund for centrally sponsored schemes, allocation of both short-term and long-term credit from financial institutions etc.
The share of backward states along with special category states in the Plan outlay as well as in central assistance has been increasing steadily since the First Plan. Accordingly, the share of these states in the total plan outlay had increased from 46 per cent in the First Plan to 51 per cent in the Third Plan and then to 54 per cent in the Fifth Plan.
3. Special Area Development Programmes:
In order to develop hilly areas, tribal areas, drought- prone areas, specific plan schemes have been designed with full central assistance. Besides, other schemes of rural development formulated for the improvement of specific groups such as marginal farmers and agricultural laborers were implemented in the backward regions.
An area based approach of ‘Tribal Sub-Plans’ (TSPs) is now being implemented for the development of scheduled tribes located in the backward rural areas.
In this manner, different special schemes for particular target group located in the backward areas are being included for block level planning for attaining integrated rural development and considerable EMPLOYMENT opportunities. All these programmes include SFDA, MFAL, Drought Prone Area Programme (DPAP), Crash Scheme for Rural Employment (CSRE) etc.
4. Incentives for Promoting Investment in Backward Regions:
In order to fight the problem of industrial backwardness of some backward regions and also to promote private investment in backward regions, various fiscal and other incentives have been provided by both the Centre, the States and other financial institution under public sector.
5.Social Security Measures:
Social security measures for the workers are considered as an important step towards reduction of income inequalities. India has adopted some social security provisions for the workers engaged in the organized sector. Workmen’s Compensation Act for providing compensation in case of any injury to industrial workers, Maternity Benefit Act for Women workers and Employees
Provident Fund Act for providing the benefit of provident fund to the workers and other employees engaged in organized industries.
6. Employment Programme and Wage Policies:
With the growing menace of Unemployment problem in India, the Government of India has introduced some special employment programmes since the Fourth Plan onwards in order to provide some relief and scope for gainful employment to unemployed. These programmes include Crash Scheme for Rural Unemployment, the Drought Prone Areas Programme, Food for Work Programme, self-employment schemes for engineers, employment scheme for educated unemployment etc.
All these programmes were short lived and ad-hoc in nature. During the Sixth Plan period, the Integrated Rural Development Programme (IRDP) was initiated in 1978-79 and after that National Rural Employment Programme (NREP), Rural Landless Employment Guarantee Programme (RLEGP) were also introduced.
More radical socioEconomic Reforms seem to be in the offing in India. These are some of the measures that can be adopted to reduce inequalities. But inequalities can be reduced, they cannot be eliminated altogether. In fact, absolute Equality is unattainable.
Additional Information
Recommendations
- A composite criteria for identifying backward areas (with the Block as a unit) based on indicators of Human Development including POVERTY, Literacy and infant mortality rates, along with indices of social and economic Infrastructure-2/”>INFRASTRUCTURE, should be developed by the Planning Commission for the 12th Five Year Plan.
- Union and State Governments should adopt a formula for Block-wise devolution of funds targeted at more backward areas.
- Governance needs to be particularly strengthened in more backward areas within a State. The role of ‘special purpose vehicles’ such as backward area development boards and authorities in reducing intra-State disparities needs to be reviewed. It is advisable to strengthen local governments and make them responsible and accountable.
- A system of rewarding States (including developed States) achieving significant reduction in intra-State disparities should be introduced.
- Additional funds need to be provided to build core infrastructure at the inter-district level in less developed States and backward regions in such States. The quantum of assistance should be made proportionate to the number of people living in such areas.
- The approach to all such funding should be outcome driven. The strategy should be to define acceptable minimum norms of human and Infrastructure Development that every block in the country should attain and funding should be driven by the consideration to achieve the norms so defined.
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Regional imbalances and income inequalities are two of the most pressing issues facing India today. The government has taken a number of steps to address these issues, but there is still a long way to go.
Regional imbalances refer to the uneven distribution of economic development across different parts of the country. Some states, such as Maharashtra and Gujarat, are much more developed than others, such as Bihar and Jharkhand. This disparity in development can lead to a number of problems, including poverty, unemployment, and social unrest.
Income inequality refers to the unequal distribution of income within a population. India is one of the most unequal countries in the world, with the top 10% of earners receiving more than 38% of the country’s income, while the bottom 50% of earners receive less than 12% of the country’s income. This inequality can lead to a number of problems, including poverty, crime, and social unrest.
The government has taken a number of steps to address regional imbalances and income inequalities. These steps include:
- Investing in infrastructure in underdeveloped regions. The government has invested in roads, bridges, Airports, and other infrastructure in underdeveloped regions. This has helped to improve the connectivity of these regions and has made it easier for businesses to operate there.
- Implementing programs to promote economic development in underdeveloped regions. The government has implemented a number of programs to promote economic development in underdeveloped regions. These programs include providing subsidies to businesses, offering tax breaks, and providing training to workers.
- Increasing the minimum wage. The government has increased the minimum wage in order to reduce poverty and inequality.
- Implementing programs to provide social assistance to the poor. The government has implemented a number of programs to provide social assistance to the poor, such as food stamps, housing assistance, and healthcare assistance.
These steps have helped to reduce regional imbalances and income inequalities in India. However, there is still a long way to go. India is a complex country with a number of challenges. The government will need to continue to work hard to address these challenges in order to achieve its goal of a more equitable Society.
One of the biggest challenges facing the government is the lack of adequate data. In order to effectively address regional imbalances and income inequalities, the government needs to have a clear understanding of the extent of the problem. However, the government does not have reliable data on many key indicators, such as poverty rates, income levels, and employment rates. This lack of data makes it difficult to develop effective policies to address these issues.
Another challenge facing the government is the lack of coordination between different levels of government. The central government, state governments, and local governments all have a role to play in addressing regional imbalances and income inequalities. However, there is often a lack of coordination between these different levels of government. This can lead to duplication of efforts, wasted resources, and a lack of accountability.
The government also faces the challenge of Corruption. Corruption can undermine the effectiveness of any government program. In the context of regional imbalances and income inequalities, corruption can lead to resources being diverted away from the poor and towards the wealthy. It can also lead to the misallocation of resources, which can further exacerbate the problem.
Despite these challenges, the government has made some progress in addressing regional imbalances and income inequalities. The government’s efforts have helped to improve the lives of millions of people. However, there is still a long way to go. The government will need to continue to work hard to address these challenges in order to achieve its goal of a more equitable society.
Regional imbalances in India
India is a vast country with a diverse population. This diversity is reflected in the country’s economic development, with some regions experiencing rapid growth while others lag behind. This disparity in economic development is known as regional imbalance.
There are a number of factors that contribute to regional imbalance in India. One factor is the country’s geography. India is a large country with a variety of terrain, from the Himalayas in the north to the deserts in the west. This diversity in terrain makes it difficult to develop infrastructure and transport networks, which can hinder economic growth.
Another factor that contributes to regional imbalance is the country’s history. India was ruled by the British for over 200 years, and this colonial rule had a significant impact on the country’s development. The British focused their economic development efforts on a few key regions, such as the Ganges Valley, while neglecting other regions. This legacy of colonial rule continues to affect India’s economic development today.
Regional imbalance can have a number of negative consequences for India. It can lead to poverty, unemployment, and social unrest. It can also make it difficult for the country to compete in the global economy.
The Indian government has taken a number of steps to address regional imbalance. One step is to invest in infrastructure development in lagging regions. The government has also launched a number of programs to promote economic growth in these regions. These programs include the Pradhan Mantri Gram Sadak Yojana (PMGSY), which aims to improve rural roads, and the Pradhan Mantri Kaushal Vikas Yojana (PMKVY), which aims to train young people in skills that are in demand by employers.
The government has also taken steps to promote social Justice and equality. These steps include the implementation of affirmative action programs, which aim to give opportunities to people from disadvantaged groups.
The government’s efforts to address regional imbalance have had some success. However, there is still a long way to go. India needs to continue to invest in infrastructure development, promote economic growth, and ensure social justice in order to reduce regional imbalance.
Income inequality in India
Income inequality is the unequal distribution of income within a population. It is often measured by the Gini coefficient, which ranges from 0 to 1, with 0 representing perfect equality and 1 representing perfect inequality.
India has a high level of income inequality. According to the World Bank, the Gini coefficient for India was 0.38 in 2017. This means that the top 10% of earners in India received 38% of the country’s income, while the bottom 50% of earners received only 13% of the country’s income.
There are a number of factors that contribute to income inequality in India. One factor is the country’s history of caste discrimination. The caste system is a social hierarchy that divides people into different groups based on their birth. This system has historically prevented people from lower castes from accessing Education and employment opportunities, which has contributed to their low levels of income.
Another factor that contributes to income inequality in India is the country’s education system. The education system in India is highly stratified, with a small number of elite schools and universities providing a high-quality education to a small number of students. The majority of students attend government schools, which are often underfunded and poorly equipped. This lack of access to quality education can hinder people’s ability to get good jobs and earn a high income.
The Indian government has taken a number of steps to address income inequality. One step is to implement affirmative action programs, which aim to give opportunities to people from disadvantaged groups. These programs include the Mandal Commission, which reserved 27% of government jobs and seats in educational institutions for people from lower castes.
The government has also taken steps to improve the education system. These steps include the Sarva Shiksha Abhiyan (SSA), which aims to provide free and compulsory education to all children aged 6-14 years, and the Right to Education Act (RTE), which guarantees free and compulsory education to all children aged 6-18 years.
The government’s efforts to address income inequality have had some success. However, there is still a long way to go. India needs to continue to invest in education, healthcare, and social welfare programs in order to reduce income inequality.
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Which of the following is not a reason for regional imbalances in India?
(A) The Green Revolution was not evenly spread across the country.
(B) The Industrial revolution was also not evenly spread across the country.
(C) The government has not done enough to invest in infrastructure in all parts of the country.
(D) The people of some regions are more entrepreneurial than the people of other regions. -
Which of the following is not a measure taken by the government to reduce income inequality in India?
(A) The government has introduced a number of affirmative action programs to help the poor and disadvantaged.
(B) The government has increased the minimum wage.
(C) The government has introduced a number of tax breaks for the poor and disadvantaged.
(D) The government has done nothing to reduce income inequality. -
Which of the following is not a reason for income inequality in India?
(A) The rich get richer and the poor get poorer.
(B) The gap between the rich and the poor is widening.
(C) The poor have less access to education and healthcare than the rich.
(D) The poor have less access to jobs than the rich. -
Which of the following is not a measure taken by the government to reduce regional imbalances in India?
(A) The government has introduced a number of special economic zones in different parts of the country.
(B) The government has increased investment in infrastructure in different parts of the country.
(C) The government has introduced a number of tax breaks for companies that invest in different parts of the country.
(D) The government has done nothing to reduce regional imbalances. -
Which of the following is not a reason for regional imbalances in India?
(A) Some regions have more Natural Resources than others.
(B) Some regions have a better Climate than others.
(C) Some regions have a better infrastructure than others.
(D) Some regions have a better educated workforce than others.