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Important Editorial Summary for UPSC Exam

18Jun
2024

The Shadow Of Caste (GS Paper 2, Government Policies)

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.