Inequality and Human Development in India — Core Measures and Policy Linkages

1) Inequality: meaning

Inequality refers to uneven distribution of income, wealth, or opportunities across individuals/groups/regions.

Forms:

• Income inequality
• Wealth inequality (often higher than income inequality)
• Regional inequality
• Gender inequality
• Social group inequality (caste/tribe etc.)

2) Lorenz curve (high-yield concept)

Lorenz curve compares:

• cumulative population share (x-axis)
• cumulative income share (y-axis)

Key idea:

• The 45° line = perfect equality.
• More bowing away from 45° line = higher inequality.

3) Gini coefficient (concept + properties)

Gini is based on Lorenz curve area:

• $0$ = perfect equality
• $1$ = perfect inequality (one person gets all income)

Exam-level interpretation:

• higher Gini → greater inequality.