New Delhi, A new study released by the World Inequality Database has unveiled a concerning picture of India’s economic landscape, indicating that the country’s economic inequality has surpassed levels witnessed during the British Raj. This revelation comes amidst India’s achievements in infrastructure and economic growth, casting a shadow over its accomplishments due to the deepening income and wealth disparities.
According to Kashmir Media Service, the study titled “Income and Wealth Inequality in India 1922-2023: The Rise of Billionaire Raj,” authored by Nitin Kumar Bharti, Lucas Chancel, Thomas Piketty, and Anmol Somanchi, explores the daunting wealth concentration in the upper tier of society. Utilizing data from national income accounts, tax records, and surveys, the report paints a grim image of wealth distribution in India.
The report tracks a decrease in economic inequality from India’s independence until the early 1980s. However, this trend took a drastic turn in the early 2000s, with inequality soaring to new heights by 2022-23. The research introduces the concept of the “Billionaire Raj,” illustrating that the top 1% now controls 22.6% of income and 40.1% of wealth, a figure that overshadows inequality levels in countries renowned for their disparities, such as South Africa, Brazil, and the United States.
The study pays particular attention to the period from 2014-15 to 2022-23, under Prime Minister Narendra Modi’s administration, emphasizing a significant rise in wealth concentration. This increase is linked to practices of “crony capitalism” and highlights the pressing need for policies to combat growing inequality.
Proposals include a reform of the tax system to cover income and wealth comprehensively and to increase public spending in vital areas like health, education, and nutrition. The authors advocate for the introduction of a “super tax” targeting the net wealth of the richest families, which could finance essential public services significantly.
Moreover, the report stresses the global consequences of India’s economic disparity, advocating for enhanced access to official data and more transparency to guide policy-making effectively.
Highlighting the dangers of such stark inequality, the study warns of the undue influence of concentrated wealth on society and governance, threatening the core values of democracy and leading to compromised governance.
The call to action emphasizes the need to bridge the widening wealth gap urgently to preserve democratic integrity and promote inclusive growth. Ignoring these issues could severely impact India’s democratic framework and social harmony, impeding its journey toward global prominence.