Land Ownership and Inequality in Rural India

Land ownership in rural India is significantly skewed, with a small percentage of households owning a large portion of the land, as highlighted by a working paper from the World Inequality Lab.

Concentration of Land Ownership

• The top 10% of rural households own 44% of the total land area.
• The top 5% and top 1% own 32% and 18% of the land, respectively.
• Approximately 46% of rural households are landless.

Regional Variations

• Bihar and Kerala exhibit high levels of land concentration among the top 1% and 10% of landowners.
• Bihar and Punjab have the highest proportion of villages where a single landlord owns more than half of the land.
• Punjab has the highest level of landlessness at 73%.

Gini Coefficient and Inequality

• Kerala has the highest Gini coefficient at 90, indicating major inequality.
• Karnataka and Rajasthan have lower coefficients below 65, suggesting more equitable distribution.
• Excluding landless populations reduces the Gini coefficient across states.

Impact of Agricultural Suitability and Market Access

• Areas with better agricultural conditions tend to have higher land inequality.
• Proximity to infrastructure like towns and roads doesn't sufficiently address inequality.

Historical and Institutional Influences

• Land inequality is lower in former princely states compared to areas with the zamindari system.
• Princely states show approximately 2-3 percentage points lower inequality.
• Zamindari areas exhibit higher levels of inequality due to fewer small farmers and dominant landlords.