Shocking Inequality in the Indian Economy: India’s richest 1% holds over 40% of national wealth
The poor will keep on becoming poor and the rich will continue to become richer. According to the research by Oxfam, India’s richest 1% holds over 40% of national wealth. This is a staggering statistic. It means that the rest of the 99% population has only access to 60% of the wealth. How can there be such equality between different sections of society? And unfortunately every year the difference in income keeps on increasing.
India’s richest 1 percent hold more than four-times the wealth held by 953 million people who make up for the bottom 70 percent of the country’s population, while the total wealth of all Indian billionaires is more than the full-year budget, a new study said on Monday.
India’s 5 Richest Billionaires by net worths as of March 18, 2020
According to Forbes, Indian Billionaires list 2020,
- Mukesh Ambani
Net Worth: $36.8 Billion
Source of Wealth: Petrochemicals, Oil & Gas
2. Radhakishan Damani
Net Worth: $13.8 Billion
Source of Wealth: Retail, Investments
Residence: Mumbai, India
3. Shiv Nadar
Net Worth: $11.9 Billion
Source of Wealth: Software Services
Residence: Delhi, India
4. Uday Kotak
Net Worth: $10.4 Billion
Source of Wealth: Banking
Residence: Mumbai, India
5. Gautam Adani
Net Worth: $8.9 Billion
Source of Wealth: Commodities, Ports
Residence: Ahmedabad, India
Indian economy is one of the fastest growing economies in the world. But at the same time India is the country which has got one of the greatest inequality % as far as distribution of funds is concerned.
The Government makes as much effort as possible to impose higher taxes on people having greater income but the inequality keeps on increasing instead of decreasing. The rich have found methods to make money in such a manner so they can escape paying taxes. And even the government is responsible for this in many places. The rich pay money to Government officials as a bribe and the Government makes laws that benefit the rich.
One important thing which is worth pondering about is, what do the rich do with this wealth? Do they give employment to people? Do they pay fairly to their employees? Or they just exploit the people and make them work more and pay less. Another thing worth considering is, do this 1% of people keep most of their wealth locked with them or they keep the money liquid so that it does not impact the economy?
One other trick the 1% play is also worth understanding. Whenever they see that there is an emerging player in their field and they are facing competition then they buy that company or organization by giving the group of people a decent amount. Now, most of people fall into that trap because they get enough money and they get financial security. Another trick they play is whenever they feel that some organization has launched a product and it is doing better, they copy that product and launch it in the market at a very cost. They can do this because they have got a lot of funds and they don’t mind facing loss initially.. In turn, the start-up company collapses in the competition and the rich class recovers all the money by increasing the price of their product later on.
The government has also taken initiative by promoting start-ups, giving loans to people so they can start a business. The Swadesi or Make In India movement can also play an important role in empowering different sections of society.
Responsibility needs to be taken by those powerful wealthy people and donate a portion of the income back to the country. They need to also make sure that they don’t exploit the other sections of the society because of the hold they have on the economy. And youngsters need to work hard and take initiative so there will be a better distribution of wealth.
The government should not fall in the trap of giving directly a certain part of the money to farmers or any other section of people because it will not solve their problem permanently. They will again come back to that state after some time. Instead, poor people should be educated and they should be trained about how to make a profit. The government should provide a conducive environment for people so they can start any business without any impediment.