Gender Wealth Inequality in India
Source: Indian Express
GS I: Social Empowerment; GS II: Welfare Schemes; GS III: Inclusive growth and issues arising from it; Essay: Women-led Development, Inclusive Growth, Social Justice
Overview
- News in Brief
- Significance of Wealth Ownership in Reducing Gender Inequality
- Status of Gender Wealth Inequality in India
- Causes of Gender Wealth Inequality
- Impact of Gender Wealth Inequality
- Government Initiatives
Why in the News?
An editorial advocates a policy shift from addressing gender income inequality to reducing gender wealth inequality.
News in Brief
- It highlights that ownership of assets such as land, housing, and financial assets is crucial for women’s long-term economic security.
- The World Inequality Report 2026 highlights persistent gender gaps in wealth ownership.
- It argues that reducing the gender wage gap alone is insufficient unless women also have equitable ownership and control over wealth and productive assets.
Significance of Wealth Ownership in Reducing Gender Inequality
- Economic Significance
- Long-term financial security – Protects women from poverty and economic insecurity.
- Access to credit – Assets act as collateral for institutional loans.
- Entrepreneurship – Enables women to start and expand businesses.
- Crisis resilience – Provides financial support during economic or climate-related shocks.
- Social Significance
- Decision-making power – Strengthens women’s role in household and financial decisions.
- Social empowerment – Enhances dignity, independence, and reduces vulnerability to violence.
- Developmental Significance
- Intergenerational equity – Enables transfer of wealth and opportunities to future generations.
- Inclusive growth – Promotes gender equality, economic diversification, and sustainable development.
Status of Gender Wealth Inequality in India
- Women make up a large share of the agricultural workforce but own only 11–14% of agricultural land.
- Most owning land acquired it as widows rather than through equal paternal inheritance, despite legal protections like the Hindu Succession Amendment Act.
- Only about 11% of rural women and 15% of urban women own a house or residential land independently or jointly.
- PMAY has increased joint ownership.
- Women have lower access to bank credit, insurance, savings, and investment, limiting wealth creation.
- Most women-owned enterprises are informal micro-businesses with limited access to finance and digital technology.
- Rural women face limited land ownership despite high workforce participation, while urban women encounter barriers in accessing high-value property.
- Key Surveys
- NFHS tracks ownership of land and housing
- Agriculture Census shows low female land ownership
- PLFS (Periodic Labour Force Survey) highlights women’s concentration in unpaid and informal work, explaining their lack of independent wealth accumulation.
Causes of Gender Wealth Inequality
- Patriarchal inheritance practices – Women often receive a smaller share of family property.
- Unequal property ownership – Legal rights do not always ensure actual ownership.
- Low labour force participation – Fewer women earn and accumulate wealth.
- Informal employment – Low-paid and insecure jobs limit asset creation.
- Unpaid care work – Household responsibilities reduce economic opportunities.
- Gender wage gap – Lower earnings reduce savings and wealth accumulation.
- Limited access to finance – Poor access to credit restricts wealth creation.
- Low financial literacy – Limited financial knowledge affects investment decisions.
- Restrictive social norms – Traditional customs discourage women’s ownership of assets.
Constitutional & Legal Framework
- Preamble – Justice, equality, and dignity.
- Article 14 – Equality before the law.
- Article 15(1) & 15(3) – Prohibits discrimination; allows special provisions for women.
- Article 16 – Equal opportunity in public employment.
- Article 39(a), (d) & (e) – Equal livelihood, equal pay, and worker protection.
- Article 39A – Equal justice and free legal aid.
- Article 46 – Promotes the economic interests of weaker sections.
- Article 300A – Right to property as a legal right.
Impact of Gender Wealth Inequality
Social Impact
- A lack of economic independence and asset control leaves women with less decision-making authority within households.
- Financial dependency and lack of personal resources increases vulnerability to domestic violence.
- Women face disproportionately higher rates of extreme poverty compared to men, often driven by unequal access to productive resources and time spent on unpaid care.
Economic Impact
- Barring women from land ownership, credit, and resources undermines efficiency, particularly in sectors like agriculture.
- Lack of capital and unequal inheritance rights restrict women’s entrepreneurship.
- Reducing gender inequality in employment and opportunities could boost India’s GDP by up to 30%.
Governance Impact
- Traditional banking systems and digital financial tools frequently bypass women, limiting their ability to save, invest, and manage economic risks.
- Persistent gender inequality slows progress towards the Sustainable Development Goals (SDGs).
- SDG 1 – No Poverty
- SDG 5 – Gender Equality
- SDG 8 – Decent Work and Economic Growth
- SDG 10 – Reduced Inequalities
Government Initiatives
- DAY-NRLM- Aims to reduce rural poverty by helping the poor especially women, organize into Self-Help Groups (SHGs) and build sustainable livelihoods.
- Lakhpati Didi- Designed to train women in SHGs to start micro-enterprises and generate a sustainable household income of ₹1 lakh or more.
- Stand-Up India- Facilitates bank loans between ₹10 lakh and ₹1 crore to at least one SC/ST or woman borrower per bank branch to promote greenfield entrepreneurship.
- Mudra Yojana- Provides collateral-free loans up to ₹10 lakh to non-corporate, non-farm small/micro enterprises to boost self-employment.
- PM SVANidhi- Offers collateral-free working capital loans of up to ₹10,000 initially to street vendors to help them resume and sustain their businesses.
- PMAY (Women Ownership)-Empowers women by mandating female head-of-household or co-ownership for houses built or purchased under the Pradhan Mantri Awas Yojana.
- Digital Financial Inclusion- Ensures universal access to formal banking, digital payments, and financial services through infrastructure like UPI and Jan Dhan Accounts, directly connecting citizens to the economy.
Key Laws & Initiatives
- Hindu Succession (Amendment) Act, 2005 – Equal inheritance rights for daughters.
- Indian Succession Act, 1925 – Governs inheritance for non-Hindus.
- Code on Wages, 2019 – Ensures equal remuneration without gender discrimination.
- MGNREGA – Provides wage employment and financial security to women.
- Self-Help Group (SHG) Movement – Promotes women’s savings, credit access, and entrepreneurship.
Conclusion
Achieving true gender equality requires moving beyond equal wages to ensuring equal ownership of productive assets and wealth. Expanding women’s control over land, housing, finance, and businesses will strengthen inclusive growth, social justice, and India’s progress toward Viksit Bharat 2047.
Key Takeaways
UPSC Prelims and Mains Practice Question
Which of the following government initiatives directly promote women’s economic empowerment through asset creation or financial inclusion?
- DAY-NRLM
- PM Awas Yojana
- Stand-Up India
- PM Jan Dhan Yojana
Select the correct answer using the code below.
A. 1, 2, 3 and 4
B. 1 and 2 only
C. 2, 3 and 4 only
D. 1, 3 and 4 only
Answer: A
Mains Practice Question
Q. Examine the causes and consequences of gender wealth inequality in India. Discuss its impact on poverty reduction, financial inclusion, and women’s empowerment, and suggest policy measures to bridge the gender wealth gap. (15 Marks, 250 Words)
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