People belonging to Scheduled Castes have witnessed the largest reduction in consumption inequality in rural areas over the last decade, while it is those classified as Other Backward Classes (OBCs) who claim that honour in urban areas, according to a Moneycontrol analysis of Household Consumption Expenditure data released by the statistics ministry. But a gap still persists, with those in the general category spending at least 10 percent more per month than other classes. Moreover, the socially marginalised groups have not done better across the country.
Kerala and Gujarat were more unequal or had a larger income gap between general and socially marginalised categories in rural and some urban pockets. Haryana, Punjab and Karnataka also figured among the top three states in terms of inequality in urban areas.
For Scheduled Caste communities in rural Kerala, the consumption gap was 1.58 times that of the general category, compared with the national average of 1.38 times. A general category person spent 1.42 times more than one from a Scheduled Tribe residing in Kerala compared with the national average of 1.2 times.
Rural Gujarat was more unequal for OBCs, with a spending gap of 1.28 times compared with the national average of 1.1. Kerala stood second with a 1.24-times gap.
For urban areas, Kerala had a gap of 1.35 times compared with the national average of 1.16.
Haryana was most unequal for SCs and Punjab was most unequal for STs residing in urban areas.
Assam, on the other hand, was more equal than any other state, with OBCs in urban areas spending more than general categories.
How unequal is India?
The consumption spending of persons belonging to Scheduled Castes increased 210 percent between 2011-12 and 2023-24 in rural areas, while the general category witnessed a 170 percent jump during this period. Meanwhile, the spending increase was 192 percent for OBCs and 190 percent for Scheduled Tribes living in rural India.
OBC consumption expenditure was only 10 percent less than the general category in 2023-24 compared with a 19 percent difference in 2011-12. On the other hand, the gap of a person from a Scheduled Tribe in a rural area with another from the general category remained a high 38 percent compared with 53 percent earlier.
In 2023-24, general category persons spent Rs 4,642 per month on consumption, compared with Rs 1,719 a decade ago. On the other hand, a person belonging to the ST community spent Rs 3,363 per month compared with Rs 1,122 earlier.
Urban India was more unequal than rural parts of the country, especially when it came to OBCs and STs. An SC person spent 36 percent less than general category or “other” category groups in 2023-24, while an OBC person spent 16 percent less.
But the OBC groups seem to have done better over the last decade. Between 2011-12 and 2023-24, the spending of an OBC person went up 196 percent compared with 142 percent for that from the general category. An OBC person spent Rs 6,738 per month in urban India compared with Rs 2,275 a decade ago.
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