GLOBALISATION AND ITS IMPACT ON INCOME INEQUALITY IN INDIA: ECONOMIC TRENDS AND EMERGING CHALLENGES

AUTHOR – ANNASHA CHATTERJEE, STUDENT AT AMITY UNIVERSITY, NOIDA

BEST CITATION – ANNASHA CHATTERJEE, GLOBALISATION AND ITS IMPACT ON INCOME INEQUALITY IN INDIA: ECONOMIC TRENDS AND EMERGING CHALLENGES, ILE MULTIDISCIPLINARY JOURNAL, 4 (2) OF 2025, PG. 226-233, APIS – 3920-0007 | ISSN – 2583-7230

ABSTRACT

With an emphasis on significant economic trends and the difficulties that have arisen since the economic liberalization of 1991, this essay examines the complex effects of globalization on income disparity in India. The expansion of technology-driven industries, higher foreign direct investment (FDI), and India’s GDP growth have all been greatly aided by globalization, but its advantages have not been shared equally. The socioeconomic gap has widened as urban areas and skilled labor have disproportionately benefited while rural communities and unskilled workers have frequently been left behind. The study looks at how the Indian economy has changed structurally, with a focus on manufacturing, services, and agriculture, and how these industries have reacted differently to the integration of global markets. Additionally, it examines how labor market conditions, educational inequalities, and policy choices have either reduced or increased inequality. The study examines measures including the Gini coefficient, salary gaps, and regional inequalities to determine the actual level of income inequality using both secondary data and empirical research.

The study also identifies new issues that continue to impede fair economic advancement, such as the rise in unemployment, informal work, and the digital gap. The paper’s conclusion makes policy recommendations for inclusive growth, including labor reforms, investments in education and skill development, and targeted social welfare.

Keywords: Globalisation, Income Inequality, Economic Liberalisation, Regional Disparities, Labour Market, Social Equity