Income Inequality in India is Worse Than During British Rule ?

Income inequality in India has become a major concern with reports suggesting that it is now worse than the disparities seen during British colonial rule. A recent analysis by financial analyst Hardik Joshi, shared on LinkedIn, highlights that the richest 1% of the Indian population now controls more than 40% of the country's wealth. In comparison, the bottom 50% of the population holds a mere 6.4%. This growing disparity is concerning, with the top 10% earning over 57.7% of the national income.

Factors Contributing to the Growing Wealth Gap

Several factors are contributing to the widening income inequality in India:

1. Tax Policies: Current tax systems often benefit the wealthiest individuals and corporations, leaving the poor with limited resources.

2. Weak Labor Rights: Lack of strong labor protections leaves workers vulnerable, further escalating economic disparity.

3. Corporate Consolidation: The rise of large corporations has stifled small businesses, making it harder for them to thrive.

4. Real Estate and Stock Market: Wealth generated from real estate and stock markets primarily benefits the affluent, as they have existing capital to invest.

5. Political Influence: Wealthy individuals often influence political decisions, preventing reforms that could reduce inequality.

According to Joshi, the widening wealth gap is not an accident but a result of policies designed to favor the rich. These policies allow the affluent to fund elections, shape media narratives, and lobby against wealth redistribution.

What Can Be Done?

Joshi argues that India's issue is not poverty but the unfair distribution of wealth. To tackle this, the country needs a political will to enforce wealth taxes, strengthen labor rights, and invest in public services like healthcare and education. By limiting corporate concentration, the wealth gap can be reduced, ensuring a more equitable society for future generations.