The Shadow Of Caste (GS Paper 2, Government Policies)
Gini Coefficient
- It is derived from the Lorenz Curve.
- It can be used as an indicator of economic development in a country.
- The Gini Coefficient measures the degree of income equality in a population.
- The Gini Coefficient can vary from 0 (perfect equality) to 1 (perfect inequality).
- A Gini Coefficient of zero means that everyone has the same income, while a Coefficient of 1 represents a single individual receiving all the income.
Gini Coefficient and Percentile Ratio indicators(2017-18 and 2022-23):
- Periodic Labour Force data: Changes in consumption inequality both overall and within social groups such as the Scheduled Tribes (ST), Scheduled Castes (SC), Other Backward Classes (OBC), and the General category.
- In 2022-23, while STs accounted for 9 percent of the population, their consumption share stood at only 7 percent.
- SCs constituted 20 percent of the population and their consumption share was 16 percent.
- The OBCs (43 percent of the population) aligned closely with their consumption share of 41 percent.
- Despite constituting 28 per cent of the population, the General category commanded a notably higher consumption share of 36 percent.
- These findings underscore the persistent disparities in the distribution of consumption across various social groups.
- SCs and STs consistently lag behind people from the General and OBC categories.
- The overall Gini coefficient decreased from 0.359 in 2017-18 to 0.309 in 2022-23, indicating a reduction in overall income inequality during this period by 050.
- The ST category saw its Gini coefficient decrease from 322 to 0.268, a 0.054 point drop.
- It signals improvement in the equitable distribution of consumption within this community.
- SC category observed a decrease from 312 to 0.273.
- The OBC category witnessed a decline in the Gini coefficient from 336 to 0.288, a 0.048 point decrease.
- General category saw the most substantial reduction, from 379 to 0.306, amounting to a 0.073 point drop.
- This decrease could be indicative of various socioeconomic changes, including social mobility and effective policy interventions.
Consumption patterns:
- It reveals underlying economic disparities among India’s social groups
- ST and SC communities endure the most pronounced discrepancies.
- For ST, SC, and OBC groups, there’s a decrease in consumption levels from 2017-18 to 2022-23, marginally for the bottom 20 percent decile.
- For the General category, the decrease in consumption levels is more pronounced indicating a relative decline in consumption among the poorest segment of the general population.
- Consumption has slightly increased for all social groups in the top 20 percent decile.
- General category experiences a significant 10 percentage point surge between the two periods under analysis.
- This disproportionate rise among the wealthiest segment of the General category implies a potential concentration of wealth among high-caste
- The disparity between the General category and other social groups remains significant, underscoring persistent discrepancies in consumption patterns.
Way Forward
- India has made remarkable strides in lifting millions out of multidimensional poverty, yet inequality among various caste groups persists.
- Despite the Constitution’s abolition of caste discrimination and the launch of affirmative action programmes, the shadow of caste continues to shape economic realities.
- The Centre has enacted numerous policies to mitigate these disparities, including reservation, rural development initiatives, and direct benefit transfers.
- Disparities in consumption patterns among different socioeconomic groups reflect potential disparities in income, access to resources, or purchasing power.
- Efforts should concentrate on augmenting income generation and consumption abilities among the lower deciles, particularly within the ST and SC communities.
- This is essential for fostering social harmony and economic stability across society.
- Continued monitoring of trends and targeted interventions addressing specific socio-economic challenges faced by different groups are necessary to ensure sustained progress towards greater economic equity.
