India's Booming Economy: The Ignored and Growing Problem of Social Inequality
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India's Booming Economy: The Ignored and Growing Problem of Social Inequality
Hanyi Chen
Opinionist
20/11/2025
Society & Culture
Over the past few decades, India's rapid GDP growth has become a sign of its economic boom, standing out among most developing countries. According to World Bank data, India's GDP has achieved impressive growth in recent years. Particularly in 2024, when its GDP growth rate reached 6.5%. Meanwhile, India's Gini coefficient stands at 25.5. Based on this, India is not only one of the world's fastest-growing economies but also, one of the most equal societies on the surface. However, the level of income equality indicated by the Gini coefficient creates a superficial illusion. In reality, income and social inequality in India is much more complex and extreme than the coefficient shows.
We commonly assume that GDP growth represents economic expansion and social improvement. This is not necessarily true. While GDP growth on its own might indicate India's rapid growth, the fact is that the country continues to face escalating income inequality. There are also significant inequalities between wealthy and poor households, as well as between urban and rural areas. These all further reflect the existence of social inequality. Clearly, behind India's booming economy lie some unaddressed issues of social equality.
GDP growth (annual %) India
Wealth Concentration, Healthcare Disparities: Social Inequality Persists
As GDP rises, India's per capita GDP has increased year by year. However, social inequality persists alongside economic growth. This is because economic growth refers to the expansion of the overall economy's total volume, without addressing the distribution of social wealth and healthcare resources. The distribution of wealth and medical resources is a true indicator of a society's equality. The majority of wealth is held by a small number of people, as India's strong class system concentrates privilege and decision-making power in the hands of a select few. This boosts the overall economy of the country. Social injustices such as gender discrimination and the caste system persist despite unemployment.
The Indian government has been working to enhance healthcare for a long time. India promotes free public healthcare for all of its citizens in order to guarantee access to care irrespective of caste or socioeconomic status. India's public healthcare system is still among the worst in the world, despite its improvements and increasing economic might. Private healthcare is becoming more and more preferred by India's middle and upper classes over public services. In stark contrast to the public system, private institutions are willing to devote more time to thorough physical examinations and diagnoses, which leads to this tendency. Since only the wealthy are benefited from the economic growth and can afford full-spectrum medical care, this trend highlights ingrained social inequality.
Moreover, high-earning groups predominantly live in urban areas, while 74% of India's doctors practice in cities. Since these physicians serve only 28% of the population, the healthcare needs of vast rural populations remain unmet. Although, due to economic growth, the government provides financial support, the severe lack of medical infrastructure discourages doctors from relocating to rural areas to practice.
The Complexity of the Issue: The Difficulty of Change
If inequality continues to increase, anxiety and frustration will permeate the lives of many. The complexity of the problem is that traditional solutions like “government policy implementation” and “individual skill enhancement” are overly idealistic, and ignore the deep-rooted institutional barriers. Due to India's closed society, individual attempts to cross class barriers and join the “elite class” are often thwarted. Opportunities in education, employment, and marriage are determined by caste identity. Therefore, seeking education or skill development does not ensure social mobility for many people from lower castes. Rather, it makes the persistent invisible barriers painfully apparent. In such a situation, effort eventually becomes futile.
Despite the Indian state's advocacy for equality and anti-discrimination principles, reinforced through affirmative action, deeply rooted social codes and attitudes have not significantly changed. The fixed social hierarchy continues to exert powerful resistance. This shows that “constitutional reforms” or “policy implementation” alone are insufficient to address structural inequality. Segregation persists in rural areas, and women's voices remain suppressed.
In the end, despite the best efforts of individuals and society, ingrained social structures continue to control their efficacy in the Indian context. Economic growth might benefit a minority while excluding the majority if the deeply embedded caste system is not destroyed.
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