Rising Land Inequality In India: Key Drivers And The Road Ahead

A recent study by World Inequality Lab provides a groundbreaking analytical assessment of land inequality across 270,000 Indian villages. By integrating national census data with geospatial datasets, the study identifies the primary drivers of land inequality.

Key Drivers

Historical Legacy

Regions under the Zamindari system developed high land concentration due to landlord dominance, whereas princely states and ryotwari areas had relatively lower inequality with more direct cultivator control.

Social Inequality

Caste structures have restricted land access, with Scheduled Castes historically marginalised, leading to persistent disparities in ownership.

Market and Geographic Factors

Fertile land, irrigation, and market access increase land value, often resulting in accumulation by wealthier groups and greater inequality.

Policy Failures

Land reforms and tenancy laws have been poorly implemented, with loopholes, weak enforcement, and political resistance limiting equitable redistribution of land.

The Road Ahead

Addressing India’s land inequality requires moving beyond pure market-based solutions. Since economic modernisation cannot erase deep-seated historical disparities, targeted policy interventions and radical land reforms remain essential to rectify persistent structural inequities and ensure equitable development across the nation.

Strengthening India’s Supply Chain Resilience

India’s manufacturing ecosystem is deeply integrated into global supply chains; heavy reliance on imported energy and raw materials exposes the economy to significant risks. The ongoing conflict involving the United States, Israel, and Iran has further amplified these vulnerabilities through disruptions in energy markets and volatility in global trade routes.

Energy and Food Vulnerabilities

India, importing 85% of its crude oil and over 50% of its gas, remains highly sensitive to geopolitical shocks that impact inflation and GDP growth.

To counter this, India is pursuing a target of 500 GW of non-fossil capacity by 2030 while scaling domestic production of oilseeds and pulses.

Manufacturing Dependencies

India remains vulnerable due to its dependence on China for 65-70% of pharmaceutical intermediates and East Asia for semiconductors.

Strategies for Industrial Resilience

India’s industrial policy must incentivize domestic production of intermediates such as APIs and high-end machinery. This requires forming strategic global partnerships while adopting input-efficient production methods to lower structural vulnerability. The way ahead involves a transition to deep-tier domestic manufacturing and technological innovation.