India ‘very unequal’, top 10% hold 57% of national income: Inequality Report
- India stands out as a “poor and very unequal country, with an affluent elite”, where the top 10 per cent holds 57 per cent of the total national income while the bottom 50 per cent’s share is just 13 per cent in 2021, according to the latest World Inequality Report 2022.
- The report has also flagged a drop in global income during 2020, with about half of the dip in rich countries and the rest in low-income and emerging regions. This is attributed primarily due to the impact of “South and Southeast Asia, and more precisely” India.
- “When India is removed from the analysis, it appears that the global bottom 50 per cent income share actually slightly increased in 2020,” states the report authored by economist and co-director of the World Inequality Lab, Lucas Chancel, along with economists Thomas Piketty, Emmanuel Saez and Gabriel Zucman.
- The report has also flagged a drop in global income during 2020, with about half of the dip in rich countries and the rest in low-income and emerging regions.
About the Report:
- According to the report, India’s middle class is relatively poor with an average wealth of only Rs 7,23,930 or 29.5 per cent of the total national income, as compared with the top 10 per cent and 1 per cent who own 65 per cent (Rs 63,54,070) and 33 per cent (Rs 3,24,49,360), respectively.
- “While the top 10 per cent and top 1 per cent hold respectively 57 per cent and 22 per cent of total national income, the bottom 50 per cent share has gone down to 13 per cent. India stands out as a poor and very unequal country, with an affluent elite,” the report states.
- The average annual national income of the Indian adult population is Rs 2,04,200 in 2021.
- The bottom 50 per cent earned Rs 53,610, while the top 10 per cent earned over 20 times more (Rs 11,66,520), the report states.
- The average household wealth in India is Rs 9,83,010, with the bottom 50 per cent owning almost nothing, with an average wealth of 6 per cent of the total Rs 66,280.
- As per the recent Multi-dimensional Poverty Index (MPI) prepared by Niti Aayog, one in every four people in India was multidimensionally poor. Bihar has the highest proportion of people (51.91 per cent of the state’s population) who are multidimensionally poor, followed by Jharkhand at 42.16 per cent and Uttar Pradesh at 37.79 per cent.
- According to the inequality report, global inequalities seem to be about as great today as they were at the peak of Western imperialism in the early 20th century.
- The poorest half of the global population “barely owns any wealth” possessing just 2 per cent of the total, whereas the richest 10 per cent of the global population own 76 per cent of all wealth, it states.