Stark Wealth Disparity India: Richest 1% own 40% wealth; bottom 50% has 3% total wealth

In India, since pandemic economic disparity between rich and poor has just widened. Since the pandemic began , India has seen sharp increase in the wealth of India’s super rich. Their wealth has surged by 121% or Rs 3608 crore. India’s Richie Rich Billionnare’s earn mindboggling Rs 2.5 crore per month.

Richest 1% in India own more than 40.5% of India’s total wealth

Wealth generation in India is quite stark with India’s richest 1% owning more than 40.5% of total wealth of the country, while bottom 50% of the population (700 million) has around 3 per cent of the country’s wealth.

Oxfam India’s Report: “Survival of the Richest” reveals a picture of huge disparity

According to Oxfam India's most recent report, "Survival of the Richest: The India narrative," only 5% of Indians hold more than 60% of the nation's wealth, while the bottom 50% of the population own only 3%.
Analysis has revealed, only 3% of the wealth created in India between 2012 and 2021 went to the poorest 50% of the population, while 40% of it went to the richest one percent.

As per research, the richest man in India saw a 46 percent increase in wealth in 2022.

“A one-off 20% tax on this billionaire’s unrealized gains from 2017–2021 could potentially raise Rs 1.8 lakh crores. This is enough to employ more than five million primary school teachers in the country for a year,”
Additionally, Oxfam India encouraged the forthcoming Union Budget to include progressive tax policies like a wealth tax in order to "address this outrageous inequality."

From 102 billionaires in total in 2020 to 166 billionaires in 2022, India saw a growth. According to the report, the aggregate wealth of India's top 100 earners has reached $660 billion (Rs 54.12 lakh crore), enough to cover the whole Union Budget for more than 18 months.

CEO of Oxfam, Amitabh Behar, expresses concerns over increasing rich and the poor and states

“While the country suffers from multiple crises like hunger, unemployment, inflation and health calamities, India’s billionaires are doing extremely well for themselves. The poor meanwhile in India are unable to afford even basic necessities to survive.”

He further urged finance minister to implement progressive tax measures such as wealth tax and inheritance tax , which have proven historically to be effective in tackling inequality.

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Nationwide survey by Flight Inequality Alliance India (FIA India)

More than 80% people in India support tax on the rich and corporations who earned record profits during Covid-19 pandemic. Further more than 90% participants demanded budget measures to combat inequality such as universal social security , right to health and expansion of budget to prevent gender based violence.

Executive Director, Gabriela Bucher of Oxfam International stated:

“It’s time we demolish the convenient myth that tax cuts for the richest result in their wealth somehow ‘trickling down’ to everyone else. Taxing the super-rich is the strategic precondition to reducing inequality and resuscitating democracy. We need to do this for innovation. For stronger public services. For happier and healthier societies"

Expectations from Union Finance Minister Nirmala Sitharaman

Oxfam International also urged the Finance Minister to enact windfall taxes and one-time solidarity wealth taxes to stop crisis profiteering. The group also called for a permanent increase in taxes on the top 1%, with a focus on capital gains, which are taxed at lower rates than other types of income. Along with net wealth taxes, it also aimed to enact inheritance, property, and land taxes.

Further, Oxfam has also urged Finance Minister to enhance budgetary allocation of health sector to 2.5 percent of GDP by 2025, as envisaged in National Health Policy to reinvigorate public healthcare system, reduce OOP expenditure and strengthen health prevention and promotion

Suggestions from OXFAM

• Strengthen Primary Health Centers, Community Health Centers and government hospitals with adequate number of doctors, nurses and government hospitals with adequate number of doctors

• Make quality health service available within 3 Km radius of people’s residence or workplace

• Enhance budgetary allocation for education to global benchmark of 6 percent committed in the National Education Policy

• Reduce existing inequality in education by spending more on programs meant for improving educational status of marginalized sections (SC/ST/Girls)

• Ensure workers in formal and informal sector are paid basic minimum wages

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