Disturbing Wealth Inequality In India - 1% Richest Own 40% Wealth In India

Описание: #indianpoverty #india #adani #richindians

India has surpassed China as the most populous country in the world. And over 50% of the population are under the age of 30. The young and fastest growing economy in the world and the third-biggest in Asia, the country has the largest consumer base for crude oil, steel, sugar, and gold. Recent data reveals that more than 415 million people have come out of poverty during the last 15 years.

While all these data look fascinating, the disturbing fact is that the proportion of wealth distribution is not fair enough. Can you imagine, over 40% of the entire wealth of the nation is with just 1% of the richest people in the country. And shockingly, the bottom 50% of the Indian population own just 3% of the country’s entire wealth.

The wealth of billionaires has increased 10 times more in the last decade despite the pandemic. Although poverty has reduced in India, it only appears to be a bubble that can burst anytime if the wealth of richest people erodes. This may sound absurd, I will tell you later why the downfall of the richest will trigger extreme poverty.

For example, the growth of India’s and Asia’s richest man Adani has been meteoric. In 2014, he had a wealth of 2.8 billion dollars, and his current net worth is massive 150 billion dollars. From being the 609th richest to the 3rd richest person in the world is one hell of a move. This all happened in a decade. All credit goes to his close ties with ruling political parties, including Congress and BJP. Adani won a slew of Government contracts in energy and infrastructure. His companies produce power, run ports and airports, and they have also entered the media business.

Adani’s companies are growing too big, and they cannot be allowed to fail, as it will collapse the country’s economy at large. Even LIC has invested over 9.8 billion dollars in his companies during the last two years. LIC stands a chance to gain the most if there is growth, and also stands to lose big if things go otherwise.

The Hindenburg accusations of stock manipulations and account fraud, though may not be true, it has certainly caused a ripple effect in the Indian economy and the stock market. The public companies’ investment in private entities is an absolutely a cause for worry as it can impact the common man with price rise in basic commodities.

Indian banks are widely exposed to Adani’s group and many other Indian Billionaires. If there is a series of defaults, it will wreak havoc in the seemingly robust Indian economy, hurting the common tax payer even more. The companies and wealth of Indian Billionaires have so much embedded in the country’s infrastructure, and their collapse will hit the Indian economy harder.

Also, when it comes to paying taxes, the common people bear the brunt while the billionaires cleverly evade. Here is how they avoid them.
• Most of their wealth is stashed in foreign countries where they enjoy zero taxation.
• Several rich Indians including Mukesh Ambani have set up their family offices in Singapore and Dubai to enjoy lower capital gain taxes. In comparison with India’s 30 percent corporate taxes, Singapore only levies 17 percent tax, which offers a great saving. Recently, over 8000 Indian millionaires have moved their bases to foreign countries. Imagine how much India will lose on taxes. Then who pay the taxes, simple, YOU & I. I bet most average tax paying Indians including me are aware and use the only 80C section where you get tax deduction for up to 150,000 rupees.
• Most billionaires run charitable organizations and get massive tax exemptions. Even many wealthy spiritual gurus absolutely pay zero tax by turning their revenue into donations and gifts.
• The companies of rich Indians borrow heavily from Indian banks to run their businesses and borrowed money is not considered an income, and henceforth not taxable.

Many reports suggest that the billionaires around the world have doubled their income during the pandemic. It has unleashed economic violence that may crush the poor if there are no political actions taken. But if the government continues to favour the richest with their policies and laws, it could lead to economic disaster and a possible uprising.