Live Wire - It is wire in which current flows from electric pole to our home . Its colour is Red.
Neutral Wire - It is a wire whichis used to complete domestic circuit. Its colour is Black.
Neutral is the wire tied at the low potential end between each phase, enabling the completion of a circuit and maintaining a stable voltage level.
Since the neutral wire completes and electrical circuit (in terms of alternating current) it carries the same current as the live or phase wire tracing back to the generator, however, it's potential to earth is nearly 0V. The voltage between the phase to earth would be 220V, so the phase wire would alternate current direction between maximum positive and maximum negative peaks of the AC cycle.
As a potential difference is needed neutral wire is equally important.
hope it helps