Glaring inequality: India’s rich keep getting richer

GLOBAL inequality has reached emergency levels, according to a study conducted by a G20 panel of independent experts. The richest 1 per cent captured two-fifths of all new wealth created worldwide between 2000 and 2024, while the bottom half of humanity received a pittance — merely 1 per cent. India is no exception to this disturbing trend — the nation’s richest 1 per cent have expanded their wealth by 62 per cent in just over two decades. The rich are steadily getting richer in the world’s fourth-largest economy, but the poor are generally struggling to become less poor. This economic disparity has only worsened the skewed distribution of resources among the haves and the have-nots.

The panel report should prompt policymakers to find ways and means to bridge the ever-increasing gap. Last week, the Kerala government declared that the state had eradicated extreme poverty. Though this big claim has been doubted by some experts and rejected by Opposition parties, the benefits of people-centric development and community participation cannot be ignored. The initiative has helped thousands of extremely poor families get better access to food, healthcare, housing and means of livelihood. It makes sense to prepare and execute micro plans for each identified family. Other states can customise this model as per their needs and conditions.

It’s natural for state and Central governments to latch on to favourable data. Earlier this year, the World Bank reported that India had managed to lift 17 crore people from extreme poverty between 2011-12 and 2022-23. The Centre patted itself on the back for a job well done, even as the methodology for reporting poverty estimates came under scrutiny. It has to be understood by all stakeholders that numbers alone cannot show the whole picture. Efforts to reduce poverty should make a qualitative difference on the ground. While economists are generally not keen on the imposition of wealth tax, the government must ensure that the super rich contribute their fair share to the exchequer. The focus should be on Sabka Vikas, which is a prerequisite for Viksit Bharat.