'Out-of-touch claim': Congress slams NDA govt on income equality data

Business Standard

2 days ago

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.