After Gautam Adani and his family topped the Hurun List of Richest Indians with a total wealth of Rs11.6 lakh crore by surpassing Mukesh Ambani who has a total wealth of Rs 10.14 billion, the spotlight moved to the widening gap between the rich and the poor in the country. India has now 185 billionaires who hold an astounding amount of $1.2 trillion, equivalent to one-third of the total Gross Domestic Product of the country. At a time when the GDP growth rate fell to a 15-month low of 6.7%, accompanied by soaring unemployment, increased inflation, depreciating currency, decreased rural spending, faltering manufacturing and pathetically bad performance of farm sector, 29 new billionaires were added to the list of richest Indians. It is ironic of course, but not unexpected or shocking to the Indian economy.
India Boasts 29 Billionaires
While China registered a decrease of 25% in number of billionaires, India witnessed an increase of 29%, bringing the total number of billionaires to 334. According to the Hurun India report, India has 1,539 individuals with a wealth of at least Rs 1,000 crore. It has 534 High-Net-Worth individuals (HNIs) with a total wealth of Rs 5,000 crore.
Most Unequal Country?
It is in stark contrast to the condition of struggling masses. While India is one of the fastest-growing economies, it is also the country with one of the most unequal economic conditions. Since the economic reforms were launched during the 1990s when Manmohan Singh was the Finance Minister, inequality has been rising sharply. The richest have grabbed the major part of the wealth created through crony capitalism and inheritance.
Widening Rich-Poor Gap
It is ironic that while the richest are getting richer at a much faster pace, the poor are struggling to earn a minimum wage and access quality education and healthcare services.
Oxfam: 1% Grabs 73% Wealth
According to Oxfam International, the top 10% of the Indian population holds 77% of the total national wealth. The richest 1% grabbed 73% of the wealth generated in 2017, while 670 million people comprising the poorest half of the population, could get only a 1% increase in their wealth.
Oxfam has also said in its report that billionaires’ wealth increased by almost 10 times over a decade and their total wealth is higher than the entire Union budget of India for the fiscal year 2018-19, which was at Rs 24.422 billion.
64% GST Collected From 50% Indians
According to the report prepared by Oxfam, it will take 941 years for a minimum wage worker in rural India to earn what the top-paid executive at a leading Indian garment company earns in a year.
Oxfam also suggests that many ordinary Indians are not able to access the health care they need. About 63 million people are pushed into poverty because of healthcare costs every year – almost two people every second.
If media reports are to be believed, approximately 64% of the total goods and services tax (GST) in the country is collected from the bottom 50% of the population, while only 4% comes from the top 10%.
No Healthy Diet For 74% Population
According to the World Inequality Report, about 74% of the population cannot afford a healthy diet and 39% fall short of a nutrient-adequate one.
How the inequality has grown with economic development in India can be gauged by the fact that from the 1930s until India’s independence in 1947, the top 1% held around 20 to 21% of the country’s national income, but today, the 1% holds 22.6% of the country’s income.
