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Q.How do you reduce inequalities in the distribution of income and wealth?
Telangana TsbieTSBIE Telangana Intermediate (2nd Year) Commerce Board 2026Subjective· 10mImportance★★★★★est
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Start your 14-day free trial to unlock the full solution →Inequality in income and wealth is reduced by taxing the rich more and spending on the poor, by redistributing productive assets (land reforms), by generating employment, and by providing social security, subsidised food, education and health so that the poor can earn and spend more.
Why reduce inequality
Extreme inequality lowers overall welfare, weakens demand and creates social tension, so reducing it is a key objective of Indian planning and of NITI Aayog's inclusive-growth agenda.
Measures to reduce inequality
- Progressive direct taxes on income and wealth, with exemptions for the poor.
- Land reforms — abolition of intermediaries, tenancy reform and ceilings to help the landless.
- Control of monopolies to prevent concentration of economic power.
- Employment-generation programmes such as MGNREGA that raise rural incomes.
- Poverty-alleviation and self-employment schemes that help the poor build assets.
- Social security — pensions, insurance and welfare for weaker sections.
- Public Distribution System (PDS) supplying subsidised food grains.
- Minimum and fair wages for unorganised workers.
- Spread of education and health, raising the earning capacity of the poor. …
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