Wealth and poverty in rural India

The main objectives of this paper are to identify and account for the regional variations in the rural household incomes and inequalities in income distribution between and within regions in India. Clearly, higher average incomes are concentrated in the W and NW regions, and very low incomes in the densely populated E and S. These differences have been analysed through the use of correlation and regression model, based on 15 variables. The results indicate that agricultural development (reflected in mechanization and irrigation), size of holdings, and family size have a positive influence on incomes, and landlessness negative. Further, a significant negative correlation between low caste population density and household incomes suggests that, at least, some of the impoverishment in the villages may be attributed to an unfair social structure that has developed and has been maintained over a long time in India. This conclusion is further reinforced by comparing income data from regions dominated by tribal social system and community ownership of land with those where Hindu caste system and private ownership of land are dominant.