Richest 1% own 58% of total wealth in India: Oxfam Study
According to study conducted by rights group Oxfam, India’s richest 1% now hold a huge 58% of the country’s total wealth, indicating rise income inequality. It is higher than the global figure of about 50%.
It shows that 57 billionaires in India now have same wealth ($216 billion) as that of the bottom 70% population of the country. Globally, just 8 billionaires have the wealth as the poorest 50 % of the world population.
Key Findings of Study
- The total global wealth in the year 2016 was $255.7 trillion of which about $6.5 trillion was held by billionaires, led by Bill Gates ($75 billion), Amancio Ortega ($67 billion) and Warren Buffett($60.8 billion).
- Globally, just 8 billionaires have the same amount of wealth as the poorest 50% of the world population.
- Since 2015, richest 1 % owned more wealth than the rest of the planet. Over the next 20 years, 500 people will hand over $ 2.1 trillion to their heirs (a sum larger than GDP of India, a country of 1.3 billion people).
- Over the last two decades, richest 10% of the populations in China, Laos, Indonesia, India, Bangladesh and Sri Lanka have seen their share of income increase by more than 15%.
- Poorest Sections: The poorest half of world has less wealth than had been previously thought. The poorest 10% have seen their share of income fall by more than 15%.
- Solution: It calls to build a human economy that benefits everyone not just the privileged few.
- In India, there are 84 billionaires with a collective wealth of $248 billion led by Mukesh Ambani ($19.3 billion), Dilip Shanghvi ($16.7 billion) and Azim Premji ($15 billion).
- Gender pay gap: India suffers from huge gender pay gap. It has among the worst levels of gender wage disparity (men earning more than women in similar jobs) and the gap exceeding 30%.
- In India, women form 60% of the lowest paid wage labour but only 15% of the highest wage–earners. Thus, India women are poorly represented in top bracket of wage–earners and experience wide gender pay gap at the bottom.
- Indian government must introduce inheritance tax and increase wealth tax as the proportion of this tax in total tax revenue is one of the lowest in India to end the extreme concentration of wealth and to end poverty.