rnin o io onomi ss es 21.13
conclusion wealth. We may have a look at the latest data from
the Credit Suisse related to India’s inequality:
The actual cost of demonetisation will be known
by the end of the fiscal 2016-17 only. While the The richest 1 per cent owns 53 per cent of
the country’s wealth.
short-term gains of it will be limited in nature, the
success of this move will be mainly known by its The richest 5 per cent own 68.6 per cent,
long-term effects. However, to maximise the gains while the top 10 per cent have 76.3 per
out of this, the Government needs to take several cent.
other timely and rational steps to complement it. At the other end of the pyramid, the
Thus, the momentum generated should not get poorer half competes in just 4.1 per cent
reduced so that economy can realise the gains of the total wealth of the nation.
from demonetisation. India’s richest 1 per cent owned just 36.8
per cent of the country’s wealth in 2000,
6. ADDreSSiNg iNeqUAliTy while the share of the top 10 per cent
was 65.9 per cent. Since then they have
steadily increased their share in the
country’s wealth—the share of the top 1
Inequality has already been an important concern per cent now exceeds 50 per cent.
in India for the Government. In the wake of India’s situation looks worse than the
globalisation process, the debate has got even United States where the richest 1 per cent
louder. Meanwhile, a few recent global reports owns 37.3 per cent of total wealth.
(of early 2017) put India’s inequality concern on While India’s finest still have a long way
top of the global debate. Several questions related to go before they match Russia, where the
to the issue became focus of the debate among top 1 per cent owns a stupendous 70.3
the experts and policy makers—how inequality per cent of the country’s wealth.
hurts, who gets maximum hurt, how to address As per the new India Human Development
the problem, etc7. Survey (IHDS), which provides data on income
inequality for the first time, India’s score of income
ineQuAlity concerns equality is lower than Russia, the United States,
The latest New World Wealth (a Johannesburg- China and Brazil—is more egalitarian than only
based company) report says India to be the second- South Africa.
most unequal country globally, with millionaires
controlling 54 per cent of the nation’s wealth. ineQuAlity neeDs to be checkeD
With a total individual wealth of US$5,600 Though inequality is found everywhere, its
billion, it’s among the 10 richest countries in extremes hurt economies multi-dimensionally. As
the world. Yet, average Indian is relatively poor. per Oxfam, sharp rise in inequality in India and
If we compare India with Japan (the most equal the other countries around the world is damaging,
country in the world) situation looks even worse and the governments of the countries need to
where millionaires control only 22 per cent of the make efforts to curb it. Rising inequality will have
several negative consequences for the nations—
7. The write-up is based on several contemporary reports slowing down poverty reduction, challenging
and Government releases such as–the Economic
Survey 2016-17, Union Budget 2017-18, World sustainability of economic growth, compounding
Economic Forum, Oxfam reports, Credit Suisse, etc. the inequalities between men and women, and