A study reveals that in India, in 5 years, the income of the most modest majority has experienced a vertiginous fall, while the income of the richest has increased sharply. The economic crisis caused by the pandemic has greatly accentuated inequalities.
With our correspondent in New Delhi, Sebastien Farcis
Between 2016 and 2021, the incomes of the poorest 20% of Indians have been cut in half, something that has never happened in almost 20 years. And this crisis is also hitting the middle class. Because according to this Price Center survey, conducted among 240,000 households, 60% of the most modest Indian population has seen its income drop sharply.
This, while on the other side, the richest 20% have increased their resources. The inequality gap is therefore widening, and we are witnessing the beginning of a social drama, as illustrated by Amit Basole, economist at Azim Premji University in Bangalore. “ Our study of the urban poor in Bangalore showed that families borrow up to six times their monthly salary to survive, which is dangerous. Newspapers have full pages of people selling their jewelry, banks are seizing mortgaged homes. Food aid has prevented people from starving, but now more direct aid is needed. »
In May 2020, the government rolled out a support fund equivalent to 1% of India’s GDP, which is relatively low. Many therefore hope to see new aid in the next budget, which will be announced in a week,
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