Meeting the Real “Gini” of India:

An Analysis of Indian Respondents’ Perceptions of Income Inequality in India

Abstract

Based on our fraught human history of widespread revolts, it is often presumed that income inequality can disrupt the status-quo. In recent years, researchers have come to question this connection between actual inequality and adverse political results. The findings show that most people around the world are unable to gauge societal inequality through relative comparisons, and are uncertain about both the magnitude and directionality of the gap. The aim of this study was twofold: 1) to assess the disparity between Indian respondents’ perceived and actual ratings of income inequality in India using a Gini Coefficient score; and 2) to identify factors that influenced these ratings. Almost 250 respondents from a wide cross-section of India participated in an online survey to give their perceived ratings of India’s Gini coefficient score along with the factors that influenced their responses.  Over 90.2% considered the degree of inequality in India to be far higher than the actuality, thus showing the great extent to which they consider their country to be an unequal one. The analysis identifies “Quality of Governance” as the only statistically significant predictor for improving income inequality, showing that the government is considered to be the primary bearer of responsibility for providing quality education and healthcare, which is sadly lacking. Nonetheless, the findings constitute a “call to action” for the Indian Government to implement more effective policies to tackle these issues. Future studies could delve deeper into the problem to determine the extent to which governance influences perceived income inequality in India.