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Congress Challenges Centre’s Claim on Income Equality, Cites Poverty and Wage Disparity

Congress Challenges Centre’s Claim on Income Equality, Cites Poverty and Wage Disparity

by | Jul 6, 2025 | Business & Economy | 0 comments

The Congress party has strongly rebutted the Central government’s assertion that India is the “fourth most equal country in the world”, calling the claim misleading in light of ongoing poverty and wage inequality.

The BJP-led government recently cited a World Bank report that ranks countries based on consumption-based inequality, using it to bolster its economic narrative ahead of election season. However, the Congress pointed out that the same report acknowledges significant limitations in measuring inequality solely through consumption data, and highlights the stark disparity in wages and income levels.

“No country with 28% of its population living in poverty can seriously claim to be among the most equal,” said a Congress spokesperson. “The government is cherry-picking one favorable metric while ignoring structural inequities.”

The World Bank report does suggest that India’s consumption inequality appears low by global standards, but it also cautions that such measures often underestimate actual income and wealth gaps, particularly in large, diverse economies.

Congress further noted that wage inequality in India remains among the highest globally, with urban-rural divides and gender pay gaps contributing to economic imbalance.

As political debate heats up over data interpretation, economists urge caution, stressing the need for multi-dimensional analysis that includes not just consumption but wealth, income, and opportunity access to assess real equality.

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