Economic inequality rose in cities, dipped in rural India: Plan panel | delhi | Hindustan Times
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Economic inequality rose in cities, dipped in rural India: Plan panel

delhi Updated: Jan 28, 2013 02:09 IST
Chetan Chauhan
Chetan Chauhan
Hindustan Times
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Inequality between the richest and the poorest has risen at a faster rate in cities, as compared to rural India, raising questions over the impact of the UPA government’s inclusive growth agenda.

It was believed that liberalisation, unveiled in 1992, would benefit the urban Indian more than their rural counterparts because of the rise in income of all classes. The myth seems to have been broken by a new Planning Commission study, which found that the income of the rich grew at a much faster rate than the poor in cities — resulting in rise in inequality. Inequality of wealth is measured using the Gini ratios. http://www.hindustantimes.com/Images/Popup/2013/1/28-01-13-pg-08a.jpg

The plan panel group headed by SR Hashim — set up to define poverty in urban areas — employed the Gini ratio on the National Sample Survey Office’s (NSSO) per capita monthly consumption data to measure the inequality over short (2004-05 to 2009-10) and long (1973-74 to 2009-10) periods.

For the shorter period, which quantifies the regime of the UPA government, the Gini ratio for rural India has declined from 0.30 in 2004-05 to 0.29 in

2009-10, whereas the same for urban India has increased from 0.37 to 0.38.