Land Inequality in Rural India: World Inequality Lab Report Key Findings

A recent study by the World Inequality Lab highlights deepening land inequality in rural India, with a large share of households remaining landless.

About the Report

• The report “Land Inequality in India: Nature, History, and Markets” is prepared by the World Inequality Lab.
• Data Base: It uses Socio-Economic Caste Census (2011) data covering 650 million people across 2.7 lakh villages.

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• Focus: The study examines patterns, regional variations, and historical causes of land inequality in India.
• Gini Coefficient: The report uses the Gini coefficient to quantify land inequality, capturing how unevenly land is distributed across households.

Key Findings of the Report

• High Concentration of Land: Top 10% of rural households own 44% of land;
  • Top 5% own 32% of land;
  • The top 1% own 18% of land.
• Extreme Landlessness: Around 46% of rural households are landless, making landlessness a major driver of inequality.
• Regional Disparity: Inequality varies widely, with Bihar, Kerala, and Punjab showing higher concentration of land.
  • States like Karnataka and Rajasthan are relatively more equal.
  • Punjab has the highest landlessness (73%), followed by Bihar and Madhya Pradesh, indicating uneven agrarian structures.
• Gini Coefficient Trends: States like Kerala (~90) and Bihar (~80) show very high inequality, confirming unequal land distribution.
• Village-Level Inequality: In some villages, a single landlord controls over 50% of land.
• Fragmented Ownership: Among landowners, most hold small plots (0–2 hectares), yet large landowners control a disproportionate share.

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Causes of Land Inequality

• Historical Legacy: Colonial land systems like zamindari led to concentration of land among landlords.
• Landlessness: Marginalised groups, especially Scheduled Castes, face high landlessness driving inequality.
• Agricultural Suitability: Regions with better fertile land tend to have higher concentration of ownership.
• Market Access: Proximity to markets, roads, and towns often increases inequality instead of reducing it.
• Princely States vs British Areas: Former princely states show relatively lower inequality compared to British-administered regions.

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