India's Rich-Poor Divide is Worse than British ERA!

A recent analysis by the World Inequality Lab has highlighted a dramatic surge in income inequality within India, positioning it among the highest globally, surpassing even the United States, Brazil, and South Africa.

This period, dubbed India's "golden age of billionaires," has seen a significant rise in the number of billionaires, making the wealth distribution far less equitable than during the British colonial era, according to the study co-authored by prominent economists including Thomas Piketty.

The Hurun Research Institute's 2024 global rich list reveals India's billionaire count has reached a peak of 271, with a remarkable addition of 94 billionaires in 2023 alone. This group's collective wealth is nearing $1 trillion, accounting for 7% of global billionaire wealth, marking the largest increase in billionaire numbers outside the United States.

The study pointedly contrasts the current wealth concentration with that of the British Raj, indicating a more pronounced inequality in contemporary India.

To analyze the disparity, the study's authors calculated the wealth and income share of the top 1% of earners, drawing upon a variety of sources including national income accounts, tax records, and surveys on wealth, consumption, and income. Historical tax records since 1922 show that, during the British Raj, the top 1% of earners held between 20 and 21% of the nation's income. This figure has now risen to 22.6%.

Furthermore, wealth inequality has been scrutinized since 1961, combining household survey data with the Forbes Billionaire Index. This analysis reveals that the top 1% currently holds 40.1% of India's total wealth. The study highlights a dramatic increase in the billionaire population from one in 1991 to 162 in 2022, with the total net worth of these individuals as a percentage of India's net national income skyrocketing from under 1% in 1991 to 25% in 2022.

Follow ProDot Group for more