Gini Index Trend in India from 1974 to 2023

India’s first recorded Gini index was 33.2 in 1977, which denoted a moderate level of income inequality. After that, it remained comparatively constant, ranging between 32 and 32.5, during the following two years for which data is available (1983 and 1987). This implies that India’s income distribution was largely stable during the late 1970s and early 1980s. A slight decrease in inequality was observed in 1993, as the Gini index dropped to 31.6. This could potentially be attributed to the economic reforms initiated in 1991, which might have had some initial equalizing effects on income distribution. However, the trend shifts noticeably in the early 2000s. In 2004, the Gini index jumped to 34, indicating increased income inequality. This upward trend continues, with the index reaching 34.9 in 2009 and peaking at 35.9 in 2017. This period of increasing inequality coincides with India’s rapid economic growth, suggesting that the benefits of this growth was not equally distributed across the population. Interestingly, a slight decrease in the Gini index was noted in 2018. Between 2017 and 2018, it fell from 35.9 to 34.5, then to 33.8 in 2019 and 2020. The most recent data point in 2021 shows a Gini index of 32.8, the lowest since 2004. This recent downward trend could indicate that efforts to reduce income inequality might be having some effect, or it could reflect the equalizing impact of economic shocks like the COVID-19 pandemic. Despite fluctuations, there was a general trend of increasing inequality from the 1970s to the mid-2010s, with the Gini index rising from 33.2 in 1977 to 35.9 in 2017. The 1980s and early 1990s showed relative stability in income inequality. The 2000s and early 2010s saw a more rapid increase in inequality, possibly linked to rapid economic growth. From 2017 to 2021, there was a noticeable decline in the Gini index, suggesting a reduction in income inequality. However, significant gaps in the data, particularly from the mid-1990s to the early 2000s, make it challenging to get a complete picture of inequality trends. In conclusion, India’s Gini index trend reveals a complex picture of income inequality over the past five decades. While overall inequality has increased since the 1970s, recent years have shown a promising downward trend. However, it’s important to note that a Gini index in the low to mid-30s still indicates significant income inequality.