Inequality in India greater today than at the height of the British Raj
Inequality in India greater today than at the height of the British Raj WSWS
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Income Inequality in India: A Report on Wealth Distribution
While hundreds of millions of workers and rural poor in India struggle to make ends meet and some two hundred million people suffer from malnourishment, the income share of India’s wealthiest 1 percent has risen to among the highest anywhere in the world.
The World Inequality Database Paper on India
The latest World Inequality Database Paper on India, titled “Income and wealth inequality in India 1922-2023,” reveals that India’s top 1% now holds a larger share of the national income compared to their counterparts in other highly unequal countries such as South Africa, Brazil, and the US.
The Monopolization of Wealth
The report, authored by economic experts at World Inequality Lab (WIL), highlights that the benefits of India’s capitalist “rise” have been concentrated in the hands of the Indian bourgeoisie, privileged sections of the middle class, and global capital. Meanwhile, the majority of the population continues to face poverty, deprivation, and economic insecurity.
Key Findings from the Report
- The top 1% of India’s population holds 22.6% of national income and 40.1% of national wealth in 2022-23.
- The bottom 50% receives only 15% of India’s national income.
- The middle 40% has an income share of 27.3%.
- The bottom 50% owns just 6.4% of national wealth, while the middle 40% owns 28.6%.
The report also reveals the staggering level of income inequality, stating that the top 1% earns on average INR 5.3 million (US $63,580), which is 23 times the national average income. In contrast, the bottom 50% and the middle 40% earn INR 71,000 (US $853) and INR 165,000 respectively.
The Impact of Economic Reforms
The report highlights that social inequality in India began to grow sharply with the initiation of pro-investor/pro-market economic reforms in 1991. Over the past three decades, the wealth share of the top 10% has increased from 45% to 63%, demonstrating how the Indian bourgeoisie has benefited from these policies.
Proposed Reforms
The report suggests implementing a “super tax” on Indian billionaires and multimillionaires, along with restructuring the tax schedule to include both income and wealth. These measures aim to finance major investments in education, health, and public infrastructure.
A Call for Change
The report concludes with a warning that such high levels of inequality cannot be sustained without major social and political upheaval. It urges policymakers to take action to address income and wealth inequality in order to prevent a potential crisis.
SDGs, Targets, and Indicators
1. Which SDGs are addressed or connected to the issues highlighted in the article?
- SDG 1: No Poverty
- SDG 10: Reduced Inequalities
- SDG 16: Peace, Justice, and Strong Institutions
2. What specific targets under those SDGs can be identified based on the article’s content?
- SDG 1.4: By 2030, ensure that all men and women, in particular the poor and the vulnerable, have equal rights to economic resources, as well as access to basic services, ownership, and control over land and other forms of property.
- SDG 10.1: By 2030, progressively achieve and sustain income growth of the bottom 40 percent of the population at a rate higher than the national average.
- SDG 16.5: Substantially reduce corruption and bribery in all their forms.
3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?
- Income share of the top 1% of India’s population
- Income share of the bottom 50% of India’s population
- Wealth share of the top 1% of India’s population
- Wealth share of the bottom 50% of India’s population
Table: SDGs, Targets, and Indicators
| SDGs | Targets | Indicators |
|---|---|---|
| SDG 1: No Poverty | Target 1.4: By 2030, ensure that all men and women, in particular the poor and the vulnerable, have equal rights to economic resources, as well as access to basic services, ownership, and control over land and other forms of property. | – Income share of the top 1% of India’s population – Income share of the bottom 50% of India’s population |
| SDG 10: Reduced Inequalities | Target 10.1: By 2030, progressively achieve and sustain income growth of the bottom 40 percent of the population at a rate higher than the national average. | – Income share of the top 1% of India’s population – Income share of the bottom 50% of India’s population |
| SDG 16: Peace, Justice, and Strong Institutions | Target 16.5: Substantially reduce corruption and bribery in all their forms. | N/A |
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Fuente: wsws.org
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