India is a land of extremes and of contradictions. We are able to launch a record number of satellites into space and bring to fruition the most cost-effective Mars visit ever, but our people are still mired in superstition and blind faith. There is extreme wealth here; but also wretched, grinding poverty. India is the 6th richest country in the world. There are those Indians who are among the richest in the world; there are also those Indians who are among the hungriest, most malnourished, most exploited and the poorest in the world.
The United States of America is the richest country in the world says a report by New World Wealth. India is sixth on this list which is estimated by calculating the total wealth of all individuals of that country; including cash, property, equity and business interests. China is second, Japan is third, the UK is fourth and Germany is fifth. France, Canada, Australia and Italy follow India on the list.
Last year, India was the best-performing wealth market in the world. The sum of wealth increased by 25% from $6,584 billion in 2016 to $8,230 billion in 2017. In the past decade from 2007 to 2017, there was a 160% increase in the total wealth!
There are many very, very rich people in India – what is known as ultra high net worth individuals. 8,595 individuals in India are ultra-rich; in other words, they are people with net asset values of over $30 million.
If the total wealth of India is high, it is because only some people are very wealthy. India’s per capita wealth (average wealth of the Indian citizen) is still very low. Our per capita wealth is abysmally low compared not only with western or developed nations but also with countries such as Indonesia and others.
An estimated 57 billionaires control about 70% of India’s wealth according to an Oxfam report released at the World Economic Forum. The International Monetary Fund also warned of growing inequality in the country. There is inequality between the urban and rural areas; along with staggering inequality within urban areas as well.
Government policies are not geared at benefiting small traders and the informal or unorganised market that comprises a significant portion of the Indian economy. The benefits that are supposed to trickle down to the poor never do. Most of India’s super-rich are part of business dynasties and have inherited the wealth they have. Few if any are self-made.
If Indians such as Mukesh Ambani and expats such as Laxmi Mittal get richer and are featured in lists of the richest men in the world, this is not a matter of pride for us Indians. Their wealth means nothing to the common Indian. The super rich of India continue to dodge taxes, use foreign tax havens and protect their wealth. Unless the public spending on health and education is increased significantly and genuine jobs are created (giving loans to set up small businesses does not count as job creation), inequality will continue to be India’s actual reality. That urban landscape where swank gated communities live in prosperity right alongside squalid slums will continue to remain an undisputed fact.
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