Latest news with #PovertyandEquityBrief
Indian Express
10-07-2025
- Business
- Indian Express
Daily subject-wise quiz : Economy MCQs on coking coal, Gini coefficient and more (Week 118)
UPSC Essentials brings to you its initiative of subject-wise quizzes. These quizzes are designed to help you revise some of the most important topics from the static part of the syllabus. Attempt today's subject quiz on Economy to check your progress. 🚨 Click Here to read the UPSC Essentials magazine for June 2025. Share your views and suggestions in the comment box or at With reference to the Gini Index or Gini coefficient, consider the following statements: 1. It is a way to understand how equally income, wealth or consumption is distributed across households or individuals in a country. 2. According to the World Bank, India's Gini Index stands at 25.5, making it the fourth most equal country in the world. 3. India's consumption-based Gini index declined from 2011-12 to 2022-23. How many of the statements given above are correct? (a) Only one (b) Only two (c) All three (d) None Explanation — 'India is not only the world's fourth largest economy, it is also one of the most equal societies today' . According to the World Bank's Poverty and Equity Brief, India has a Gini Index of 25.5, ranking it as the world's fourth most equal country after the Slovak Republic, Slovenia, and Belarus. This indicates that the benefits of economic progress are being distributed more evenly across the population. — According to the World Bank, India's Gini Index is 25.5, ranking it fourth most equal in the world. Hence, statement 2 is correct. — The Gini Index is a simple yet effective approach to understand how income, wealth, and consumption are divided evenly across households or individuals in a society. Hence, statement 1 is correct. — The Gini Index, often known as the Gini coefficient, was named after the early twentieth-century Italian statistician Corrado Gini and has long been the most widely used measure of inequality. It assesses inequality on a scale of 0 to 1 (or 0% to 100%), with higher scores indicating greater disparity. — 'India's consumption-based Gini index improved from 28.8 in 2011-12 to 25.5 in 2022-23, but inequality may be underestimated due to data limitations…' According to the World Inequality Database, income inequality has increased from 52 Gini in 2004 to 62 in 2023. The wage gap remains substantial, with the top 10% 's median earnings 13 times higher than the bottom 10% in 2023-24.' Hence, statement 3 is not correct. Therefore, option (b) is the correct answer. (Other Source: Consider the following statements: 1. The Corporate Average Fuel Efficiency (CAFE) covers a broader range of emissions, including particulate matter and NOx. 2. The BS VI focuses on fuel efficiency and CO2 emissions. Which of the statements given above is/are correct? (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2 Explanation — The Worldwide Harmonised Light Vehicles Test Procedure (WLTP), which the European Union adopted in 2018, ensures that emissions of carbon dioxide, nitrogen oxides (NOx), and particulate matter from vehicles on the road more closely reflect results recorded in laboratory conditions. — The carmaker also advised that the government wait until the next Corporate Average Fuel Efficiency (CAFE) phase 3 regulations, which are presently being discussed, to clarify their position on adopting WLTP. — While both CAFE and BS VI regulations currently use the Modified Indian Driving Cycle (MIDC) for testing, they serve different purposes: CAFE focusses on fuel efficiency and CO2 emissions, whereas BS VI covers a broader range of emissions, including particulate matter and NOx, which are important pollutants. Although CAFE 3 standards have not yet been announced, the Bureau of Energy Efficiency (BEE), the organisation in charge of developing them, recommended in June 2024 a transition from MIDC to WLTP beginning March 31, 2027. Hence, statements 1 and 2 are not correct. Therefore, option (d) is the correct answer. Consider the following statements: 1. Cambodia is among the earliest and most active supporters of China's global infrastructure plan, the Belt and Road Initiative (BRI). 2. China is the largest financier of Cambodia's infrastructure — including roads, bridges, dams, railways, and special economic zones (SEZs). Which of the statements given above is/are correct? (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2 Explanation — Six of the 14 countries announced were ASEAN members, with Laos and Myanmar facing the highest levies of 40%. Thailand and Cambodia, which have received significant Chinese investment and expanded economic cooperation with China over the last decade, were slapped with 36% US tariffs. Meanwhile, Indonesia, which imports about one-third of its exports from China, was subject to a 32% reciprocal duty. — China is the main financier of Cambodian infrastructure, which includes roads, bridges, dams, trains, and special economic zones (SEZs). Cambodia was also one of the first and most ardent sponsors of China's Belt and Road Initiative (BRI), a global infrastructure project. Hence, statements 1 and 2 are correct. — Notably, following the first trade war, China boosted its engagement with ASEAN countries through investment and industrial integration, which helped to enhance regional manufacturing. In May, China and ASEAN concluded negotiations to expand their free trade area, extending cooperation into the digital and green sectors, as well as other growing industries. Therefore, option (c) is the correct answer. Consider the following statements about coking coal: 1. The import of coking coal has consistently increased from 2020-21 to 2023-24. 2. India included coking coal in the list of critical minerals in 2022. 3. It is mainly imported by the refining industry. How many of the statements given above are correct? (a) Only one (b) Only two (c) All three (d) None Explanation — The government must include coking coal in the list of critical minerals and provide special dispensation to enhance the domestic production of the key raw material for steel production, according to a Niti Aayog report. Hence, statement 2 is not correct. — The report 'Enhancing Domestic Coking Coal Availability to Reduce the import of Coking Coal', said considering India's commitments to Net Zero by 2070, the country's interests would be better served by fully utilising the proved reserves of medium coking coal (16.5 billion tonne) in India for metallurgical purposes. — The European Union has declared the ingredient as a critical raw material along with 29 other raw materials which include 'green energy' minerals like lithium, cobalt, and rare earths. (*Import (in million tonnes) up to April-Sept, 2024 (Source:-CCO)) — Coking coal is imported by the steel industry primarily to bridge the gap between demand and indigenous availability and to improve quality. Other sectors, such as the power sector, cement, and coal traders, import non-coking coal. Hence, statement 3 is not correct. — The import of coking coal has not increased consistently from 2020-21 to 2023-24. Hence, statement 1 is not correct. Therefore, option (d) is the correct answer. (Other Source: With reference to the deposit insurance, consider the following statements: 1. The insurance cover of Rs 2 lakh per depositor is for all accounts held by the depositor in all branches of the insured bank. 2. The DICGC insures only commercial banks including branches of foreign banks functioning in India and does not insure regional rural banks. Which of the statements given above is/are correct? (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2 Explanation — The government is mulling raising the insurance protection for bank accounts above the present maximum of Rs 5 lakh, according to Financial Services Secretary M Nagaraju. — Deposit insurance is provided by the Deposit Insurance and Credit Guarantee Corporation (DICGC), a specialised branch of the Reserve Bank of India. About DICGC — The DICGC aims to safeguard 'small depositors' from the risk of losing their savings in the event of a bank failure. — The insurance cover of Rs 5 lakh per depositor applies to all accounts held by the depositor at all branches of the insured bank. Hence, statement 1 is not correct. — The DICGC insures all commercial banks, including foreign bank branches in India, local area banks, regional rural banks, and cooperative banks. However, the DICGC does not cover primary cooperative societies. Hence, statement 2 is not correct. — Savings, fixed, current, and recurring deposits are all protected. The DICGC does not insure deposits made by foreign, central, or state governments, as well as interbank deposits. Therefore, option (d) is the correct answer. Daily Subject-wise quiz — History, Culture, and Social Issues (Week 116) Daily subject-wise quiz — Polity and Governance (Week 118) Daily subject-wise quiz — Science and Technology (Week 118) Daily subject-wise quiz — Economy (Week 117) Daily subject-wise quiz — Environment and Geography (Week 117) Daily subject-wise quiz – International Relations (Week 117) Subscribe to our UPSC newsletter and stay updated with the news cues from the past week. Stay updated with the latest UPSC articles by joining our Telegram channel – IndianExpress UPSC Hub, and follow us on Instagram and X.
Indian Express
10-07-2025
- Business
- Indian Express
Measuring inequality
A government release over the weekend claimed that 'India is not only the world's fourth largest economy, it is also one of the most equal societies today'. Using data from the World Bank's latest Poverty and Equity Brief, it said India's Gini Index was at 25.5, which made it the world's 'fourth most equal country…after the Slovak Republic, Slovenia and Belarus', reflecting how fruits of economic progress were being shared 'more evenly across its population'. The Gini Index or Gini coefficient, named after the early 20th century Italian statistician Corrado Gini, has historically been the most commonly used measure of inequality. It measures inequality on a scale from 0 to 1 (or 0% to 100%), with higher values indicating higher inequality. The government's claim has been contested both by academics who study inequality, as well as observers who see India as a country with high and rising inequality. An incomplete picture The paragraph in the World Bank's Poverty and Equity Brief referenced by the government includes important qualifiers that the release did not mention: 'India's consumption-based Gini index improved from 28.8 in 2011-12 to 25.5 in 2022-23, though inequality may be underestimated due to data limitations… The World Inequality Database shows income inequality rising from a Gini of 52 in 2004 to 62 in 2023. Wage disparity remains high, with the median earnings of the top 10 percent being 13 times higher than the bottom 10 percent in 2023-24.' The government release does not mention the 'data limitations' that the World Bank itself has flagged, and does not take into account the Gini Index value calculated by the World Inequality Database, which shows a rise in the Gini Index from 2004 to 2023. Consumption-based Gini To map income inequality, countries often conduct surveys on income data. India, however, collects data on consumption, not income. When it comes to inequality, this makes a big difference because variation in income is far more than variation in consumption. As people earn more, the bulk of their additional income is turned into savings. As such, a Gini Index of inequality using consumption data underestimates the level of inequality in a society. Also, economists such as Anmol Somanchi, who works at the World Inequality Lab (run by the Paris School of Economics and University of Berkeley, California), have pointed out that it is misleading to compare India's consumption-based Gini Index value with that of other countries, which use an income-based Gini. In short, the use of consumption-based Gini underestimates inequality and undermines comparability with other countries. Limitations of survey data It is widely acknowledged that the gap between the bottom 10% and top 10% of the population is widening, even if it is assumed that everyone in the country is becoming better off. However, the calculation of inequality is unlikely to capture the widening gap. This is because surveys, whether they are about consumption or income, typically falter in capturing the data of the richest. This is for two broad reasons. One, the rich exhibit what is technically called a 'differential non-response', Somanchi said. In other words, the rich tend to decline to participate in surveys much more than the poor do. Two, the way the sampling of these surveys works, the chances of the richest persons in the country being drawn in a random sample are pretty low. This becomes a big reason for underestimation of inequality if just a handful of the extremely rich are driving up inequality. Thus, if 90% of the population is not 'unequal' while most of the inequality is being driven by the top 1%, any survey that fails to sample the top 1% will fail to capture the real picture on inequality. Researchers have flagged this underestimation in several other countries such as the US, the UK, and many other European countries as well. A way to correct for this lapse in sampling is to use the survey data in conjunction with income tax data, which is uniquely accurate in capturing the incomes of the top earners in a country. Studies that did this in the UK, the US, and elsewhere found that relying solely on survey data underestimated inequality. The World Inequality Lab Gini Index, which shows that inequality in India has increased, uses income tax data to correct for this gap. Problems with Gini Index The Gini Index too does not capture all aspects of the inequality picture. This is because it is not 'sensitive' to changes at the extremes of a population, but is overly sensitive to changes in the middle. This has to do with the way the Gini Index is calculated — and experts have been urging for close to 50 years now that other measures should be considered. One option is the Palma Ratio, named after a Chilean economist who suggested looking at the shares of income (or wealth) at the extremes — the bottom 50% and the top 10%, for instance. When such comparisons are calculated with the use of income tax data (apart from survey data), the emerging picture is grim: it shows income inequality is now worse than in the colonial period, and the top 1% earn far more than the bottom 50%. Bigger picture on inequality The point of studying inequality is to allow governments to tailor appropriate policies to alleviate excessive inequality. However, an inaccurate reading of inequality can lead to policies that actually exacerbate existing inequalities. If high inequality is not contained, it can create social unrest and eventually militate against sustained economic growth. Relying solely on the Gini Index, that too with severe data limitations, can obscure the reality. As explained above, a given version of the Gini Index could be falling even when inequality between the two extremes of the population may be rising. Udit Misra is Deputy Associate Editor. Follow him on Twitter @ieuditmisra ... Read More
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Business Standard
09-07-2025
- Business
- Business Standard
Gaps in data gathering understate actual levels of inequality in India
According to the Household Consumption Expenditure Survey (HCES) 2022-23, inequality in consumption did decline Business Standard Editorial Comment Mumbai Listen to This Article A recent report showing India as among the most equal countries in the world, based on a Gini index of 25.5, has sparked a debate. The Gini coefficient measures inequality within a population, with a higher value indicating higher inequality. The figure in question, cited from the recent World Bank 'Poverty and Equity Brief' for India, measures consumption inequality, not income or wealth inequality. This distinction is crucial because consumption-based measures often tend to underreport the true extent of inequality, especially in a country like India, where high-income groups often mask their incomes or altogether evade household surveys. While it
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Business Standard
06-07-2025
- Business
- Business Standard
'Out-of-touch claim': Congress slams NDA govt on income equality data
The Congress on Sunday dismissed the central government's claim that India is among the world's most equal societies, calling it a "staggeringly out-of-touch" interpretation of World Bank data. The rebuttal came a day after a government release cited India's Gini Index score of 25.5—ranking it fourth globally in income equality. In a statement dated July 6, Congress General Secretary Jairam Ramesh accused the Bharatiya Janata Party-led government of data manipulation and misleading narratives. 'No country that has a poverty rate of 28.1 per cent can make a justifiable claim to being one of the most equal societies in the world,' the statement read. Referring to the World Bank's Poverty and Equity Brief released in April, the Congress listed several concerns. It highlighted that income inequality in India is likely underreported due to sampling and data limitations in government surveys. 'Wage disparity in India is high, with the top 10 per cent earning 13 times more than the bottom 10 per cent in 2023–24,' the party noted. It added that the adoption of a newer purchasing power parity (PPP) benchmark in 2021 likely inflates the sense of progress on poverty reduction. The party also flagged methodological changes in the Household Consumption Expenditure Survey 2022–23, warning that comparisons with earlier data may not be reliable. It recalled that the previous 2017–18 survey was scrapped by the Centre after it showed declining rural consumption. Poverty rate far higher under new benchmark: Congress Using the benchmark of $3.65/day for lower-middle-income countries, the Congress cited the 2022 poverty rate as significantly higher at 28.1 per cent—contradicting the Centre's assertion that only 5.3 per cent of Indians remain poor under the revised $3/day standard. According to the Congress, this discrepancy underscores the lack of updated poverty lines and consistent data. 'The government has not updated the poverty line since the Rangarajan Committee Report of 2014,' the Congress said, demanding immediate action. Inequality is structural: Congress Congress said inequality is now 'firmly embedded' in India's economic growth trajectory under the Narendra Modi-led government. It urged reforms to the Goods and Services Tax (GST) to reduce its regressive impact, end 'tax terrorism', and address rising corporate concentration. 'There is a compelling need to support households directly and promote savings and consumption among the most vulnerable,' it said, criticising what it described as 'brazen corporate favouritism'. Govt cites flagship schemes to defend record Earlier, the Ministry of Information and Broadcasting had claimed that India's Gini Index score reflects sustained economic growth and effective poverty-alleviation measures. According to a PIB release, India's poverty rate fell from 16.2 per cent in 2011–12 to 2.3 per cent in 2022–23 under the $2.15/day threshold. It credited schemes such as PM Jan Dhan Yojana, Aadhaar, Difect Bank Transfer, Ayushman Bharat, Stand-Up India, PM Garib Kalyan Anna Yojana, and PM Vishwakarma Yojana for expanding welfare, financial access, and entrepreneurship.
Time of India
05-07-2025
- Business
- Time of India
World Bank: India ranks 4th in income equality, ahead of US and China; 171 million lifted out of extreme poverty
India has become one of the most equal societies in the world, ranking fourth globally in income equality with a Gini Index of 25.5, according to the latest World Bank data. India stands next only to the Slovak Republic, Slovenia, and Belarus which have better income equality scores. The Gini Index measures income distribution on a scale from 0 (perfect equality) to 100 (maximum inequality). India's score is better than that of major economies like China (35.7), the United States (41.8), and all G7 and G20 countries. A release from the Social Welfare department said, "It reflects how India's economic progress is being shared more evenly across its population. Behind this success is a consistent policy focus on reducing poverty, expanding financial access, and delivering welfare support directly to those who need it most." India's Gini Index has improved from 28.8 in 2011, showing steady progress in equitable growth. A key reason behind this has been the country's strong push in reducing poverty. The World Bank's Spring 2025 Poverty and Equity Brief noted that between 2011 and 2023, about 171 million Indians moved out of extreme poverty. During the same period, India's poverty rate dropped sharply from 16.2 per cent to just 2.3 per cent, based on the global poverty line of $2.15 per day. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Is it legal? How to get Internet without paying a subscription? Techno Mag Learn More Undo The report also pointed to various government initiatives that have helped drive this transformation. The PM Jan Dhan Yojana has widened financial inclusion with over 55 crore bank accounts. Aadhaar, the national digital ID system, now covers more than 142 crore people, making welfare delivery through Direct Benefit Transfers more efficient and saving Rs 3.48 lakh crore by March 2023. Healthcare access has improved with Ayushman Bharat, which offers Rs 5 lakh health cover and has issued over 41 crore cards. Schemes like Stand-Up India support SC/ST and women entrepreneurs, while the PM Vishwakarma Yojana helps artisans with loans and training. The PMGKAY food security programme has supported more than 80 crore people, the release added. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
