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COLUMN

Disparities divide people,

states and the country

ore than seven decades have 2013. But the trend was reversed in the sub-
passed since India’s Inde- sequent years. There has been a significant
THE LAST pendence on August 15, 1947. divergence rather than convergence in the
economic fortunes of the poorer and richer
The country has gradually
WORD M become the world’s sixth- states between fiscal years 2013 and 2018.
This was the result of richer States continu-
largest economy in terms of nominal GDP
ABDUL WASEY and the third-largest in purchasing power ing to show strong growth while the poorer
parity. After the 1991 economic liberalisa- states fell behind. Only two of the eight
tion, India achieved 6-7 per cent average low-income states in 2013 had growth rates
GDP growth annually. The country, accord- above the national average over the next
ing to former Reserve Bank of India gov- five years. Six out of the nine high-income
ernor Raghuram Rajan, is likely to become states, meanwhile, recorded higher growth
bigger than China in the long run. than the national average during 2013-18.
All this paint a rosy picture of India as The Oxfam Inequality Report 2019,
the world’s fastest-growing major nation, meanwhile, points at other kind of disparity
which is catching up fast with its richer in the country. That is of wealth inequality.
counterparts in terms of absolute size of The wealth of top nine billionaires in India,
the economy. But a closer look draws a as per the report, is equivalent to the wealth
different image of the nation.
The inter-state disparities, for
example, have widened in re- The wealth of top
cent years even as the national nine billionaires in
economy grows in size and in-
fluence on the global stage. Many India is equivalent
low-income states, as per the to the wealth of the
Crisil’s latest Gross State Domes-
tic Product (GSDP) report, have bottom 50 per cent
experienced isolated years of of the population
strong economic growth above
the national average.
However, economic conver- of the bottom 50 per cent of the population
gence within the country may while 60 per cent or the majority of the
not be seen in the near future population own merely 4.8 pc of the na-
as poorer states continue to lag tional wealth. Women are the worst victim
behind their wealthy neighbours of income inequality. In their workplaces,
in economic growth. Bihar, for instance, women continue to receive 34 per cent less
was the fastest-growing state this year. The wages than their male peers for the same
state still could not bridge the widening gap amount of work. Also, when the govern-
with the financially stronger counterparts ment of a nation reduces its expenditure
as it has simply not been able to maintain a on healthcare, education and employment
healthy growth rate over a sustained period facilities, women are the first ones to lose
of time. out on these services.
Prosperous states such as Gujarat, for These are just few of the several forms of
example, have been able to achieve sus- disparities that India and Indians are fac-
tained economic growth and increase their ing. Until proper measures are taken to end
gap over other states. As per the Crisil re- these disparities, the prosperity of the coun-
port, there was a slight convergence in the try will remain only on papers.
per capita income levels of the poorer and
richer States between fiscal years 2008 and LETTERS@TEHELKA.COM

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