A recent study by the National Council for Applied Economic Research threw up some interesting but rather unfortunate results. The top 20% of India's population enjoyed more than 50% of the national income in FY10. This may by itself not seem very surprising. But add to that the fact that in 1993-94, about 37% of India's people earned over 50% of national income and the picture that arises does not look very encouraging. Further, 60% of India had a mere 28% share in total income. This figure stood at 39% around the period of 1991.
The years from 1991 onwards are considered to be reform years for the country. Evidently, the freeing up of the economy has benefited some sections of society much more than others. An Economic Times report points out that this disparity is more to do with the fact that a vast section of Indian society do not have the means to increase their earning power. Due to this, some people are finding themselves in a better position to grab the opportunities a growing economy is throwing up. Clearly, subsidies, support prices and employment guarantee schemes are not proving to be enough. It is education and skill development where more focus should be. As the saying goes, give a man a fish and you feed him for a day. Teach a man how to fish and you feed him for a lifetime
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