Wealth Gap in India: Causes, Effects and Solutions

Running head: WEALTH GAP IN INDIA
WEALTH GAP IN INDIA
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1WEALTH GAP IN INDIA
In the developing countries, distribution of the unequal wealth is the common problem.
Many socio-economic issues arise because of the critical gap between the rich and poor people.
Financial difference not only disturbs the survival capacity of the individuals but also impedes
the inclusive economic growth of a country. Poor people tend to become gradually poorer and
rich people tend to be richer day by day. The world is currently witnessing excessive amount of
wealth gap created by men themselves that is leading to create survival problems for the half of
the world.
Firstly, Illiteracy is the main cause of the inequality between the masses. The wealth gap
has also led to create difference among rich and poor in having high quality of knowledge. There
is a list of schools and universities that are expensive hence these are out of the reach of the
common people. Because of this, poor societies are unable of competing with great paying jobs,
and it creates a central problem for them. Poor people even cannot fulfill the daily needs such as
food, house and clothes. For instance, an individual is paid according to his education level.
Moreover, a person’s education level is directly proportional to the skill level. Therefore, the
person with tertiary education exhibits more advanced skills that in turn lead to a higher pay
scale. In developed countries and urban areas. The impact of education can be still seen.
Although there are policies like free education in these countries, education levels are different
owing to factors that include intelligence, internal drive to learn and personal ability access.
Another significant reason is an escalation of misconduct rates. As pointed out by Cressey
(2017), downgraded people cannot create sufficient money to encounter their simple needs, they
choose disgusting acts such as robbery or stealing.
Secondly, advancement in technology enlarges the earnings gap. As stated by Peters
(2017), people are more jobless than in the ancient times owing to the involvement of machines

2WEALTH GAP IN INDIA
in industrial areas. Average paying jobs for common man in India within the monthly income is
500 to 15000 rupees whereas official jobs fetch around 300 to 400 thousand which are not
available to common man. Poor people even cannot get the high standard jobs because in an
interview they asked for their family background excepting their talents. No one cares about their
talents. Companies see their benefits by looking at the candidate they are hiring for some
financial support if they need in the future. Moreover, they access the social status of the person
as well, if they have a reference for any powerful person, they consider you for the job.
Otherwise, they say no to you straight away. However, skilled labor workers are less affected by
mechanization as compared to unskilled workers. This may be the fact because the skilled labor
force is in demand to operate computers and machinery. Nevertheless, a magnificent method to
investigate the ways of life of the opulent and deprived stand to focus on the profession of the
people in the ancient India. Since the country is an agriculture-based country, most of the people
here are dependent upon this profession. The historical data of poverty in India reveals that the
wealth gap in the society has deep and effective past. In the 18th century, this gap also increased
as the country was gradually engulfed by the British and other European colonizers. Over this
particular period the exploitation by the colonizers was directed aimed to the farmer community
and the weavers as these were the main objects on which the Europeans used to trade. The gap of
wealth increased as the rich or providential princes used to exploit their common subjects to
submit tax returns to the British governor which resulted in the great famine. In addition to this,
the country was indirectly associated with the World wars that browbeaten the lower section of
the country. After the partition, the mass movement affect the wealth balance of India greatly.
Poverty is a global issue against which India has been continuously fighting. It has
become one of the fastest growing economies of the world but a large number of people lives