World Inequality Lab Report on Land Inequality in India: Findings

World Inequality Lab released a report titled “Land Inequality in India: Nature, History, and Markets”, covering data from ten major Indian states representing approximately 75% of India’s rural population. The report analyses approximately 2,70,000 villages covering around 650 million people.

Data Sources Used
  • 2011 Socio-Economic and Caste Census (SECC): village-level landownership data
  • Combined with data on agro-climatic conditions, colonial land tenure systems, caste composition and market access

Key Findings

Scale of Inequality:

  • Average village land Gini coefficient (on scale 0-100) reaches around 71 out of 100 (including landless households)
  • 46% of rural households are landless
  • Top 10% own 44%, top 5% own 32% and top 1% own 18% of total land area
  • Diversity of land inequality across Indian states is almost as large as between countries at the world level
  • On average, the largest single landholder controls ~12% of village land; in some villages, a single owner controls more than half of all agricultural land

Role of Agricultural Productivity:

  • Villages with more favourable agro-ecological conditions tend to have greater land concentration — benefiting large landowners disproportionately

Colonial Legacy:

  • Areas under landlord-based colonial land tenure systems show higher land concentration today
  • Villages under direct British colonial rule have higher land inequality compared to those under Indian princely rulers

Social Stratification:

  • Villages with higher shares of Scheduled Castes (SC) and Scheduled Tribes (ST) exhibit higher rates of landlessness
  • Notable exception: Kerala and West Bengal, long governed by left-wing parties, show different patterns

Regional Disparities:

  • Highest Inequality: Kerala (Land Gini coefficient at 90).
  • Lowest Inequality: Karnataka and Rajasthan (Land Gini coefficients below 65).
  • Rates of Landlessness: Punjab highest at 73%.

Market Access:

  • Proximity to towns, roads and markets is insufficient to overturn deeply embedded land inequality shaped by historical and natural factors

Public Goods Provision:

  • Villages with moderate inequality receive more public goods
  • Where a single landlord dominates, public goods provision tends to be lower

About World Inequality Lab

  • It is research body associated with economists including Thomas Piketty, focusing on measuring and analysing economic inequality globally.
  • It is known for publishing the World Inequality Report and maintaining the World Inequality Database (WID).

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