Income disparity peaks in J&K, says ASSOCHAM
MP, Chhatisgarh, Bihar, Jharkhand follow closely
Jammu and Kashmir has witnessed the highest rise in income disparities since 2005. 
Income inequalities has increased in Jammu and Kashmir by 7.37 per cent; in Madhya Pradesh, including Chattisgarh, by 4.96 per cent and in Bihar, including Jharkhand, by 4.9 per cent, according to a recent analysis done by the Associated Chambers of Commerce and Industry of India (ASSOCHAM).
The analysis reveals that inequalities continue to rise among various states even after two decades of economic liberalisation, implying that the poor are getting poorer and the rich are getting richer.
The study states that while the average expenditure remained stagnant for the poorest 20 per cent people, the average household income of the richest 20 per cent increased by 7.7 per cent.
This led to increased inequalities. The report states: On an average, a rural household in the richest 20 per cent category spent more than 258 per cent of what a household of similar size falling in the poorest 20 per cent category spent in 2004-05. This difference further increased to 286 per cent in 2009-10.
Play active role
Experts believe that state governments must play a major role in developing social sectors and critical infrastructure. “Along with achieving higher economic growth, more efforts need to be made to make it more inclusive,” said D S Rawat, secretary general, ASSOCHAM, and added that reducing income inequalities is necessary for accelerating development.
On the positive side, the report says inequalities seem to be reducing in states like Odisha, Maharashtra, Haryana and West Bengal. Rajasthan, Karnataka, north-eastern states and Union Territories have also seen some fall in the degree of income inequalities, suggesting that conflict-hit areas are the most affected in this regard. The goverment believes the results of the study will help state planners in bringing out better schemes.
