Congress slams Centre’s equality claim, cites 28% poverty and wage inequality

NOOR MOHMMED

    09/Jul/2025

  • Congress rejects Centre's use of World Bank data to claim India is the "fourth most equal" country, citing 28% poverty.

  • The party points out the same report warns of data limitations and highlights deep income and wage disparities in India.

  • Congress says celebrating consumption equality while ignoring income inequality is misleading and undermines economic realities.

New Delhi, July 9, 2025: The Congress party on Tuesday strongly rebutted the Centre’s claim that India is among the most equal countries in the world, based on a recent World Bank report that uses consumption-based data to measure inequality.

The Central government, citing the report, had asserted that India ranks as the “fourth most equal country” globally in terms of consumption-based inequality. However, the Congress termed this claim “misleading and incomplete”, pointing to the 28% poverty rate and severe wage disparity also mentioned in the same report.

A country with over a quarter of its population living in poverty cannot be considered equal by any credible economic standard,” the Congress stated in a post on social media platform X. The party further highlighted that consumption-based metrics do not reflect income distribution, and that deep wage inequality and job precarity continue to define India’s labour market.

The World Bank report itself acknowledges “limitations in comparability” between countries due to different consumption survey methodologies and non-inclusion of income data. Critics argue that while consumption may appear equalised due to redistribution measures and subsidies, it fails to capture the real disparity in wealth, access, and opportunity.

Congress leader Jairam Ramesh said, “This government cherry-picks data to spin a narrative, ignoring the report’s very warnings about misinterpreting consumption data. Meanwhile, inequality in wealth and wages is growing, and real incomes are stagnant.”

Economists too have cautioned against equating consumption equality with economic equality, as the former can mask systemic inequality and the lack of income mobility.

The Congress demanded a more transparent and comprehensive discussion on inequality in India, calling for policy reforms that address structural wage gaps and poverty, rather than celebrating a skewed interpretation of statistical data.

 


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