India’s per capita income has increased twofold, but the issue of income inequality persists.

India’s per capita income in nominal terms has doubled to Rs 1,72,000 since 2014-15, when the Narendra Modi-led NDA came to power. While this is a significant achievement, income inequality continues to be a major challenge for the country.

According to the National Statistical Office (NSO), the annual per capita net national income at current prices is estimated at Rs 1,72,000 in 2022-23, up from Rs 86,647 in 2014-15, indicating a rise of approximately 99 percent. However, in real terms, adjusting for inflation, the per capita income has only increased by about 35 percent from Rs 72,805 in 2014-15 to Rs 98,118 in 2022-23.

Noted development economist Jayati Ghosh has pointed out that while the doubling of per capita income in nominal terms may seem impressive, it doesn’t account for inflation, and the actual increase is much less. Furthermore, Ghosh notes that the increase in income has primarily benefited the top 10 percent of the population, with median wages falling and possibly even lower in real terms.

The NSO data confirms that the per capita income dipped during the COVID-19 pandemic, both in real and nominal terms. However, it has picked up in 2021-22 and 2022-23.

Former director of premier economic research institute NIPFP Pinaki Chakraborty points out that the average growth of India’s per-capita income in real terms from 2014 to 2019 was 5.6 percent per annum, according to the World Development Indicator database. This growth is significant, as it has resulted in improvements in health, education, economic and social mobility. Despite the setbacks caused by the pandemic, India has seen significant economic recovery.

Income inequality remains a major concern for India, with the country ranking among the most unequal nations in the world. The World Inequality Database estimates that the top 1 percent of India’s population holds 42.5 percent of the country’s wealth, while the bottom 50 percent holds only 2.5 percent.

Furthermore, income inequality is closely linked to other forms of inequality, such as gender, caste, and region. Women, Dalits, and people from marginalized communities are disproportionately affected by income inequality, with limited access to education, health care, and economic opportunities.

To address income inequality, the Indian government has introduced several policies, including the Pradhan Mantri Jan Dhan Yojana, which aims to provide access to banking services to all households, and the Ayushman Bharat scheme, which seeks to provide health insurance to all Indians. The government has also implemented several measures to increase economic growth and create job opportunities.

However, there is still much more that needs to be done to address income inequality in India. The government needs to focus on improving access to education, health care, and basic services for marginalized communities. It should also implement policies that promote inclusive growth and create more opportunities for employment and entrepreneurship.

While India’s per capita income has doubled in nominal terms since 2014-15, income inequality remains a major challenge for the country. The government needs to take concrete steps to address this issue and promote inclusive growth that benefits all sections of society. Only then can India achieve its goal of becoming a truly developed nation.