Income inequality: In India, a CEO earns 416 times more than his employee

The seriousness of India's commitment to end income disparity has been ranked 132nd out of 152 nations

The seriousness of India's commitment to end income disparity has been ranked 132nd out of 152 nations owing to low spending on health and education, a crumbling tax system and wide gaps in gender pay.

Prepared by Development Finance International and Oxfam, the first index to measure the commitment of governments to reducing the gap between the rich and the poor is based on three main indicators — government action on social spending, tax and labour rights — areas critical to reducing the gap.

The report, the result of the investigation for a year, says that while countries such as Sweden, Chile, Namibia and Uruguay have taken strong steps to reduce inequality, countries such as India and Nigeria perform poorly overall. Among the rich countries, the United States earns a bad rating.

The World Bank predicts that by 2030, almost half a billion people will still be living in extreme poverty. Back in 2015, 193 governments promised to reduce inequality as part of the United Nations' Sustainable Development Goals (SDGs).(economy news)

The report raps India particularly hard on the knuckle but not before revealing that in the country, the chief executive officer (CEO) of a top information technology (IT) firm brings in a massive 416 times the salary of his company’s typical employee.

India managed to secure a lowly 149th position on the health, education and social protection spending indicator, ranking below nations like Yemen, Senegal, Congo and Serbia.

Oxfam calculates that if India were to reduce inequality by a third, more than 170 million people would no longer be poor. It also questioned the lack of a concerted effort by the government to tackle inequality.

India secured the 91st rank among nations on the progressive structure and incidence of tax indicator. "The tax structure looks reasonably progressive on paper, but in practice, much of the progressive tax is not collected," the report said.

While many countries are collecting very little tax overall, India collects just 16.7% of gross domestic product (GDP), while comparable economies such as Indonesia collects 11.9% and South Africa manages to collect over 27%....read full story