Contrary to recent media reports claiming India is one of the most equal countries, a misinterpretation of a World Bank report reveals India’s persistent and worsening inequality.
Recent media narratives suggesting that India ranks as the fourth most equal country globally have been challenged following a deeper analysis of a World Bank report. These claims mistakenly stem from a Press Information Bureau (PIB) release that inaccurately interpreted statistical data, resulting in significant misreporting. Far from being among the most equal, India ranks 176 out of 216 countries in terms of income inequality as of 2019.
The erroneous claim was originally propagated by several major Indian newspapers, including The Hindu, Business Standard, The Times of India, and The Indian Express, which referenced the purported findings of the World Bank. A closer examination reveals the figures that led to this misleading depiction of India’s position.
The Press Information Bureau utilized a figure from the World Bank brief that showed India’s consumption-based Gini index improving from 28.8 in 2011-12 to 25.5 in 2022-23. However, this statistic, reflecting consumption inequality, was improperly compared to countries whose equality is gauged through income inequality measures. This basic statistical error is critical as consumption Gini indices typically appear lower than income ones because wealthier individuals tend to save more, leading to skewed comparisons.
Further compounding the confusion, the World Bank did not make or endorse any such comparative analysis. It highlighted the challenges in obtaining accurate depictions of consumption inequality due to limitations in data, emphasizing that the figures could be underestimated. The methodology of India’s 2022-23 Household Consumption Expenditure Survey differed significantly from the previous survey in 2011-12, raising concerns about data comparability over time.
India’s income Gini index, a more suitable metric for international comparisons, stands at 61 for both 2019 and 2023. According to the World Inequality Database, this figure indicates deepening inequality over decades, marking an increase from an earlier ranking of 115 in 2009. Furthermore, the country’s wealth inequality index soars at 75 in 2023, indicating pronounced disparities.
In alternative measures like per capita calorie intake, an indicator of food consumption inequality, India ranked 102nd out of 185 countries in 2019, down from 82nd in 2009. This decline further underscores India’s increasing inequality across various metrics.
The misrepresentation of India’s inequality status is not just an oversight but a severe distortion of reality, potentially leading to complacency and undermining efforts to address pressing socio-economic issues. The dissemination of inaccurate statistics by trusted media outlets could impede the necessary policy interventions required to tackle inequality effectively.
Ultimately, scrutinizing and accurately interpreting data is essential, especially when discussing social inequality, as it reflects the lived realities of millions. Addressing these disparities is imperative for equitable development, necessitating informed policy decisions based on accurate data analyses.
According to The Wire, the importance of discerning accurate data remains crucial, highlighting the urgent need for vigilant fact-checking to avoid misleading narratives.
Source: Original article