Inequality of Income in India has declined significantly since FY17, while inequality has also declined during the pandemic, according to the latest SBI Ecowrap research report. The decline in income inequality has been significant since FY17, the year of big bang formalisation that started with demonetisation, RERA reforms and GST reform in FY18, said the report authored by Soumya Kanti Ghosh, group chief economic adviser, State Bank of India. As per the SBI Ecowrap report, India’s poverty ratio has also declined to 17.9 per cent in 2020-21 from 21.9 per cent in 2011-12.
“With a progressive growth in output across states as proxied by GSDP, it is clear that the fruits of such a growth have clearly reverberated and dovetailed into an inclusive growth if estimates from Gini coefficient of state-wise per capita income are any indication that has improved since FY17. India has thus done quite well during pandemic in terms of navigating income shocks across deciles of population,” said the report published by India’s largest public sector lender’s research wing.