India Ranks 123 For Reducing Inequality: Improves By 6 Places

According to the most recent Commitment to Reducing Inequality Index, India has risen six places to rank 123 out of 161 nations for reducing inequality but continues to rank among the lowest performers in terms of health spending (CRII).

The 2022 CRII analyzes government initiatives and measures against inequality during the first two years of the COVID-19 epidemic in 161 nations. Germany and Australia are next in the CRII after Norway.

India's Rank For Reducing Inequality

India's overall ranking rose from 129 in 2020 to 123 in 2022, an improvement of six points. For reducing inequality through progressive spending, it rose 12 places to rank 129.

With three more positions, the nation now ranks 16 for progressive taxation. India dropped 73 places in the minimum wage rankings after being classed as a nation without a set national minimum wage.

India has advanced 27 positions under the "Impact of public spending on decreasing inequality indicator" and 33 positions under the "Impact of tax on reducing inequality indicator."

The Oxfam International and Development Finance International (DFI)-created Index assesses the effectiveness of government policies and initiatives in three areas that have been shown to have a significant impact on reducing inequality.

The three sectors are taxation, workers' rights, and public services (health, education, and social protection).

According to the Oxfam analysis based on the index, India continues to rank among the nations with the lowest health spending. According to the index, it has fallen another two positions in the rankings, to 157th, the lowest position in the entire globe.

"The 2022 CRII report shows India making marginal gains when it comes to reducing inequality during the COVID-19 pandemic," said Amitabh Behar, the CEO of Oxfam India. India which was ranked 129 in the previous index in 2020 has moved up six places mainly due to indicators quantifying the impact of public spending and the impact of tax on reducing inequality. These are some of the positives from the given report but the concern is that India is still lagging behind in areas like spending on health, education and social security, added Behar.

He emphasised that, regrettably, India continues to rank among the nations with the lowest health spending.

3.64 per cent of all spending in India goes on health care. According to the research, this is the lowest rating among all BRICS and neighbouring nations.

Brazil's spending is at 7.7% per cent, South Africa's is at 12.9%, and China and Russia are both spending 10%. Even in neighbouring nations, Pakistan is at 4.3%, Bangladesh is at 5.19%, Sri Lanka is at 5.88%, and Nepal is at 7.8%, according to the report.

The 2022 CRII demonstrates that, in spite of the biggest global health crisis in a century, half of the low- and lower-middle-income nations in the Index reduced the proportion of their budgets devoted to health care.

"Half of all countries (77) cut the share going to social protection, while 70 per cent cut the share going to education. While poverty levels increased to record levels and workers struggle with decades-high prices, two-thirds of countries failed to raise their minimum wages in line with economic growth during the pandemic," the report claims.

India has joined the Index's list of 12 nations without a nationwide minimum wage as of 2020.

Given that a significant portion of workers, such as domestic workers in many states, are not covered by minimum wages, India has been classed as not having one, the report stated. Despite the intense strain on government finances, 143 of 161 nations froze and 11 even reduced the tax rates for their wealthiest residents.

"Our index shows that most governments have completely failed to take the steps needed to counter the inequality explosion created by COVID-19. They ripped away public services when people needed them most, and let billionaires and big corporations off the hook as they reap profits at record numbers" said Gabriela Bucher, Oxfam International's Executive Director.

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