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Created by : Vipin Bhasin, Private Equity/Hedge Fund/VC-Manager, Indian Investment Co.  | 05 09 2010 16:01:52 +0000
Industry : Public Sector/GovernmentFunctional Area : India(Markets)
Activity:  1881 views;  last activity : 07 06 2010 20:18:09 +0000
Income distribution refers to the spread of a country's income percentage throughout its population and yields a ratio between income of the richest in a country to the poorest. When income is not proportionally distributed, it is called income inequality. While many would argue it is a very much necessary part of natural economics, as in many other countries, India’s increasing income inequality Indices of real per capita consumption by fractile groups continues to pose a significant threat. In most cases, income inequality plays a big role in the amount of crime a country has because "as the rich get richer and the poor get poorer" it promotes unhappiness. A great portion of India's population is a victim of rising monetary deficits, most of which has crossed well under the poverty threshold. While the top 10% of India’s population enjoys 31.1% of the country’s income, the lowest 10% suffers with merely 3.6%. We can calculate it with Richest man in India, Lakshmi Mittal; Approx. Networth: $51 Billion & Everyday average beggar seen in the streets of India. The Question arises that we are facing the same problem since our independence but didn't get any result to overcome the situation. Can India Overcome the problem or not??
 
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Although As a Indian i want to be overcome the problem faced by us from many years but i don't feel that the present measures or actions taken by Govt or Non govt. organization will be sufficient to overcome the problem. I feel non stop corruption is a major factor of failures of govt measures/action. Due to corruption all facilities or aid didn't reach at their proper place in proper manner. Less Education, Lack of family planning & lack of awareness are the other major factors for same. Can we will really successful to break the vicious circle of "In-equal distribution of income"? Your opinions/suggestions counts....
By Vipin Bhasin, Private Equity/Hedge Fund/VC-Manager, Indian Investment Co.  05 09 2010 16:01:52 +0000
 
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Yes... we can. Impossible is a word only to be found .....   ... etc. We can try to narrow down the gap between the rich and the poor ... at least.

After independece, we took our time to grow. Perhaps time has come now that we equally address this issue.

When Sashi Tahoor was inducted quickly in the Ministry we thought he'll utilize his experiences with UNO for the eradication of poverty. But ... he was seen interested more for I.P.L. than the B.P.L. ( below poverty line ).

So, perhaps, we are to make use of present people and system in place.

Prof APJ Abdul Kalam once said : Problems should not be your captain, instead U should be the captain of ur problems.

 we may not sit idle as :

--  there are corruption in our system / society / machinery

--  there is a huge Black-money running a parallel economy

--- the target group is mostly ignorant, tolerant and have no connection with the rest of the (well-to-do) society

--- They have shared "in-equality" in the name of Destiny

.... to_be_continued


By ASOKE KUSARI, Domestic Private Banking-Executive/Manager, A large leading PSU Bank - India  05 10 2010 14:43:02 +0000
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To begin with, there should be inequality as only it can motivate people towards excellence. However, it ratio should not exceed 2:1
By Kamaladevi Alagharu, student, housemaker  | 05 17 2010 07:46:27 +0000
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If one clusers different income groups and divide the medial income of each group by the medial income of the other group(lowest to highest) the result should be 1, which is the perfect income distribution state, meassured using an idnex called Ginni index. Where 1 is the perfect income distribution. For India it is 0.54 or 54% where each group in the cluster has income 54% higher than the previous one. I am not sure how many clusters make the distribution. If there are only 3 then this number may not be right. 54% is one of the highest mal distribution state for any country. For US it is 48% which is also high.

Problems with maldistribution of income can be reduced, by incorporating existential norms into our policies. By introducint policies that will lead to Symmetric living standardsand opportunities, freedom of choice, equlibrium in human condition, full employment, high purchaing power etc; can reduce the ill effects of mal distribution of income, which I believe our governments past to present may be is not aware off and probably it will take long time to solve this problem.


By Mathew Cherian, Research Associate/Analyst, Western Michigan University  | 05 15 2010 07:57:46 +0000
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Income inequality is a fact in all nations - even developed ones. Just that standard of inequality is different. No nation can overcome income inequality....people will always want more which drives inequality even more.
By Aditya Iyengar, Product Lead - Bullion, Base Metals & Energy, Kotak Mahindra Bank  | 05 11 2010 08:21:26 +0000
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A educated perosn is bound to do better than a non educated perosn

A perosn with aforesight is boudb to do better than a perosn who does not have  a good foresight.

A intelligent person will out perform a less intelligent person

 

We can only ensure opportunity is given to all to prove themselves


By Nikhil , Senior Manager, Insurance  | 05 11 2010 08:16:46 +0000
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lets hope so.......... but no Hope even. previously Raja Mahraja then Jamindar and now our own appointed government.
By HEMANT VERMA, Marketing and Branding, NAVNEET PUBLICATION INDIA LTD.  | 05 11 2010 05:46:22 +0000
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Britishers followed the system of "Divide and Rule"! We have adopted the system that suits the present-day politicians! We divide the country in caste, gender, and what not? We are trying to fix the cap on each category. Noble men are side-stepping paving the way for those who believe in physical strength and not mental strength! In such a situation, how can we expect inequality to go. You can expect radical change only when we advocate and propagate class-less society where sheer hard-work, and national pride, over-weigh anything else.
By S. Muralidharan, Executive Director, Knowledge Foundation & Campus Around the Corner  | 05 11 2010 05:24:22 +0000
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i agree with you


By kanukurthy sudershanrao, Operations Manager, Andhra Bank  | 05 10 2010 16:22:26 +0000
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No. it is not possible humanly. We should not be living in the fools paradise and think that the whole of the wealth will be distributed evenly or if not evenly at least better than the present secnario. Though Mr. Kulasekra is right that Impossible is the word found in the dictionary ..................... But even after that we should look at the mindset of the people at large. There are some who do not want to work but want to have all the luxuries. likewise mind set decides whether he is ready to gain wealth or not. There are lot stories which prove this point that if somebody does not want to work than you can not cajole him in doing something. If he is not doing something how can you expect that he will gain wealth. This way there are many other issues to be addressed.


By Aditya Sharma, Insurance Advisor/Analyst, LIC OF INDIA, ICICI LOMBARD  | 05 10 2010 14:58:52 +0000
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THANK YOU ASHOK FOR YOUR INVITATION,SORRY TO CONTRADICT YOU.HATS OFF TO YOUR VERY OPTIMISTIC THINKING OF HAVING AN EGALITARIAN SOCIETY.

PRACTICALLY SPEAKING EVEN IF HUNDREDS OF SASI THAROORS COME THEY WILL ONLY THINK OF ENRICHING THEMSELVES,THEIR KITH AND KIN AND WILL HAVE THE LEAST TIME TO THINK OF US.THAT IS HOW HOW HISTORY SAYS.

THE DISPARITY IN INCOME LEVELS AS OF NOW IN OUR COUNTRY IS SO VAST AND EVEN BY CONSERVATIVE ESTIMATES IT WILL TAKE DECADES FOR US TO MINIMISE THE SAME,PROVIDED OUR LEADERS GO ALL OUT TO ACHIEVE WHICH IN REALITY WILL NOT AT ALL BE IN THEIR WISH LIST.


By s.baalu , Consultant, XYZ LTD  | 05 10 2010 12:55:32 +0000
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I don't think India will be able to overcome this problem. If it wants this to happen then the black money should be converted to white and no more black money should be evolved, which is impossible in India. And income cannot be made equal, because each job differs in terms of the work load. So Inequality in income will exist in India forever......  


By Swati Raut, Product Manager, Aviva  | 05 10 2010 11:26:56 +0000
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Indian society has always been unequal since time immemorial. Even if you make this country a communist, still you will find unequal society. We have always identified ourselves as rulers or ruled and this mentality is so deep rooted that even after 63 years or independence and 60 years or republic we tend to follow the age old vlues in the name of tradition and dont want to change our attitude towards the society - between rich and poor, between upper caste and class and lower caste and class, between differnt religions, between sexes , between born rulers and born ruled - so on and so forth. It is these impediments which are are holding India from reaching at the top of the world and it will continue to do so. Of course recently govt's success of NREGA and RTI will definitely aim at reducing the gap betwen the rich and the poor but it will take a hell of a lot ot time. Money attracts money, by the same logic rich will go on becoming richer, corner away plum posts and jobs and also contracts and investment oppotunities-poor will start from the bottom and by the time reach a certain threshold limit the rich would have moved way way forward , leaving again a yawning gap between the rich and the poor , forward and backward classes or castes. So as far as my thinking is concerned it is very difficult to foresee that in near 50 years we will be able to bridge the gap. Beyond that, I cannot say, may be some avalanche happens and all are at crossroads and may be then we all start afresh with all at same place. This problem also gets compounded because we are very insecure people and do not want to donate like other in other countries. May be wiith the passage of time and with the wealth being in continuity for many years we may see some more evangelism on part of wealthy , untul then , no chance.


By Prabhakar Srivastava, Director  | 05 10 2010 05:18:10 +0000
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Inequality exists everywhere. Its just our standard of inequality and that of developed nations are different. We have poor people in Europe that are richer compared to a middle-class person in India.
By Aditya Iyengar, Product Lead - Bullion, Base Metals & Energy, Kotak Mahindra Bank  | 05 10 2010 03:45:25 +0000
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I heart says Yes, but my mind says No. I doubt if I can see such ideal society in my lifetime.


By Ravi , IT PMO, Cricket Communications  | 05 10 2010 03:31:03 +0000
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Depends on what you mean by removal of inequality. I don't know if there is any truly egalitarian society on earth. There will always be inequalities in society , inequality by birth , inequality by upbringing , and inequality by circumstances.

What we can do , as a society , is to ensure that this inequality does not make life impossible. Inequality , per se , will not affect anyone , as long as the person who is not so well off , is still able to make two ends meet and have some amount of happiness in life.

Inequality becomes a problem only if the sufferer feels the situation is hopeless ; this is what drives farmers to commit suicide.

In the next 50 years , it is very much possible to eliminate such life-threatening inequality. It will require the co-ordinated efforts of government and philanthropic individuals and organizations.

 


By K. NARAYAN, None, None  | 05 10 2010 15:39:41 +0000
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Very concerning topic Mr Bhasin, thanks for initiating. It perhaps causes accumulation of negative attitude in deprived & exploited people which can't be called healthy for the society as a whole.

I also totally support Mr Kasuri`s views here. There is always a silver lining; the only thing is; there is a genuine concern in each of us that could reflect in our democracy in every possible aspect.


By ujjval jain, Retail, Retail  | 05 09 2010 19:06:25 +0000
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