Indi Poverty And Inequality - 1308 Words

Inequality is defined as the wide gap between a low and a high income within an economy. Poverty is defined as being in the state of extremely poor. India is well renowned for having two classes, those living well above the poverty line, and those living well below. Currently, India is promoting strategies to decrease their percentage of people living under the poverty line. In 2012 the World Bank conducted some research to find out that 21.9% of the countries 1.295 billion, are living under the poverty line. As of 2014, the GNI per capita in India is $1570, US dollars, which is awfully low compared to the rest of the world. The big problem with this is that it isn’t developing at a state that it should be, although it is improving. India has traces linking to the government being corrupt, which doesn’t help the cause and this could be why it is showing poor economic development. One of the major problems that exists to reducing poverty and inequality in India is the poverty cycle. Developing countries generate a low income which then leads to low savings, poor health, education and low demand which then leads to low capital investment which then leads to low productivity which then leads to low income and this continues in a cycle as can be seen in figure 1. Much of India is stuck in this cycle. Social difference and inequality is a major problem and can reinforce, if not worsen, the continuous poverty problems in the poverty circle. As said before, the average salary ofShow MoreRelatedThe Negative Impacts of Illiteracy1171 Words   |  5 PagesSizin son xÉ™rà §Ã‰â„¢ng var. Ä °ndi onu xÉ™stÉ™xanaya almaq deyilsÉ™, o, nà ¶vbÉ™ti gà ¼n à ¶lÉ™cÉ™k. In English, this means, â€Å"Your son has cancer. If you don’t get him to the hospital now, he will die in the next day.† Imagine, though, if you had not been able to read the first message and even not been able to read the English translation. Your son would have died. 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