Poverty and Income Inequality in India

Why poverty and income inequality are still rampant in India despite trade liberalization, reforms, and growth
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There is a complicated relationship between trade liberation, poverty, and income inequality. It has led to increased research in the fields of trade liberation and poverty in line with the growing disparities in India. Reducing inequality is the link between economic growth and poverty reduction. Opportunities created by trade cannot dispute although they have come with discrepancies, some leading to poverty. Inequality matters in the fight to reduce poverty in India because low-income earners are the ones who continue to suffer. The two affect each other directly with each other and have an indirect link to poverty according to the World Bank report of 2000. Thus, even income distribution can drastically change the level of poverty at ant particular time. It means that any positive change on any of three affects the other and goes a long way in developing India. In many years, the country has engaged in international trade poverty, and income disparities expected to have shifted. However, this is not the case, and as much as trade liberalization is not the main factor, it has seen to contribute to the crisis much. The essay seeks to evaluate the reasons why India remains in poverty and inequality in income despite growth in trade liberalization.
There is inadequate and contradicting data and findings from research and surveys that hamper measurement and improvement of poverty index and eradicating of income inequality. Different studies employ different methods to come up with a result. A problem arises because different empirical studies are coming up with contradicting conclusions due to studying different demographics separately (Krishna et al. 2011, p.2). Furthermore, the findings are somewhat confusing, with some finding a decline in poverty and others the direct opposite. Some conclusions point to equality in incomes, while others show a widening gap in the same. Data found for both should have minimum disparities to enable comparing and coming up with an outcome that can help India improve. The poverty level in urban and rural India is quite different also; economic growth comes in various forms. The mixed results, diverse evidence, inconclusive poverty debates, and unclear predictions might be making India a loser in the recent global trade liberalization. According to Topalova, what exits is just theory on the same and the questions on how trade liberalization impact on inequality and poverty remain unanswered with the future of India in limbo (Topalova, 2005). There is a need for research to have a precise framework for the results to be beneficial. A lot still lacks in implementation and application stages for surveys and research to benefit India improving the poverty index and eradicating unequal incomes. Before the study did what it sets to accomplish should be established so that they end up being productive. Everything known to work is only empirical and has not applied anywhere in India.
Increased dependence on trade liberalization, especially in exporting and importing, has brought inequality in the income of employees across India. The wage gap has increased significantly between educated and uneducated employees because of the use of technology (Pavcnik, 2017, p.79). The demanding export industry requires skills, and those who have them get better wages than those who are casual workers. Workers do lose employment due to these developments, and it has mainly contributed to the poverty index. The number of unskilled workers in china is approximately forty percent, which is the main reason why the income index continues to be unequal. Adjustments to trade adversely affect these people because they are affected differently. Technology in itself affects the wage bill like those in firms with technological no-how earning more than their counterparts in ordinary firms and those in informal sectors. Trading has increased imports significantly, and this continues to affect people in the informal sector, especially agriculture. People now sort for imported rights meaning their income has radically gone down. Increased importation has also reduced the demand for labor leading to unemployment and poverty among citizens (Pavcnik, 2017, p.84). What is worrying is that the effects increase with the awareness of profits from imports and exports. The unequal distribution of resources and wealth also continues to hamper the fight against poverty and inequality. A small percentage of people in India holds and enjoys the most considerable portion of wealth. A lot needs to done to achieve a balance because trade liberalization cannot solely solve the problem. With resources in the hands of a few people, it means that the benefits that come with trading go to these companies, and even payment of taxes is not enough. There is an unequal impact of trade liberalization on trade markets. It is in terms of urban and rural areas, even per households, and in states. The three areas are affected differently, and the lack of consideration and evaluation leads o some of the places such as rural India remaining poor and unequal. Assessment of the three separately does not bring out an intended income; that is why Krishna informs this essay. The research looks at inequality in the three areas and provides a broader view of how the impacts are different. The inequality at the various levels aggravates the conditions in India. The uncorrelated change in all the areas that is a result of trade reforms is worrying because it is challenging to solve. The economic reforms have influenced the increased adverse impacts on some of the areas, and others have developed, leading to some sort of confusion (Krishna et al. 2011, p.15). Moreover, the methods used to measure poverty in all the spaces do not do an in-depth analysis and cannot lead to the finding solutions. Biswas states that ...