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Which of the following is not a cause of Inequality in India?
1. Inequality in the ownership of assets
2. Laws of Inheritance
3. Corruption and Smuggling
4. Growth of Service Sector in India

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Correct Answer - Option 4 : Growth of Service Sector in India

The correct answer is Growth of Service Sector in India.

  • Inequality is characterized by the existence of unequal opportunities and rewards for different social positions or statuses within a group or society.
  • It contains structured and recurrent patterns of unequal distributions of goods, wealth, opportunities, rewards, and punishments.
  • Several causes give rise to inequality
    • Inequality in the ownership of assets - Under the system of private property, a person is free to earn, free to save, and free to own property.
    • Inheritance: Rich inheri­tance gives them a start in life and if they are reasonably prudent, they keep up the lead.
      • Some persons are born landless, others inherit a few acres, and still others thousands of acres.
    • Corruption and Smuggling - Corruption is strongly related to inequality and growth.
      • Corruption leads to the collapse of social structure and the spread of hatred among society's classes due to injustice and inequality.
      • Also shutting out local and foreign investment due to the lack of incentives.
      • Misusing public expenditure in large projects, which prevents key sectors (such as health, education, and public services) from benefiting from these resources.
    • Unemployment - Low la­bour productivity implies a low rate of economic growth which is the main cause of poverty.
    • Differences in Natural Qualities - No two persons have the same natural talent, some are more gifted than others.
      • Persons who are endowed by nature with superior intelligence, better physique, and greater capacity for hard work must surpass others in the race of life.
    • Tax Evasion

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