Income inequity unavoidable, says minister

December 15th, 2011 - 9:30 pm ICT by IANS  

New Delhi, Dec 15 (IANS) Income inequity does grow in the initial stages of market driven economy, Minister of State for Planning Ashwani Kumar said Thursday.

“When the economy moves on a high growth trajectory in a market driven economy, some degree of increase in income inequity is unavoidable at the initial stage,” he told the Rajya Sabha.

This was because the high income group with greater command over resources was in a better position to participate in the growth process, he added.

The minister said the per capital income measured by per capita Net National Income at Factor Cost at 2004-05 prices had grown at an annual average growth rate of 5.9 percent in the last 10 years.

This was against 3.6 percent in the 1990s and 3 percent in the 1980s.

The per capita Gross National Income in Purchasing Power Parity terms at 2005 dollar rate had gone up from $896 in 1980 to $1,229 in 1990 and further to $3,468 in 2011.

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