[Fifty-seven billionaires in India possess as much wealth as the
poorest 70% of the country, according to a report on global inequality
released on Monday by Oxfam, an international confederation of 18
non-governmental organisations.
...
... The richest 10% in India own 80% of its wealth, while the richest
1% possess 58% of all wealth.
Even income growth has been uneven over the years. Between 1988 and
2011, incomes of the poorest 10% of Indians rose by $29, or around Rs
2,000, at an increase of 1% each year. For the richest 10% in the same
period, incomes increased by almost Rs 40,000, with an annual increase
of 25%.]

https://scroll.in/article/826484/embargoed-jan-16-00-01gmt-57-billionaires-possess-70-of-indias-wealth-oxfam-inequality-report

DIVIDING LINES

One percent of Indians own 58% of country's wealth: Oxfam inequality report
The survey points to a widening gap across the world.

4 hours ago
Updated 2 hours ago
Mridula Chari

Fifty-seven billionaires in India possess as much wealth as the
poorest 70% of the country, according to a report on global inequality
released on Monday by Oxfam, an international confederation of 18
non-governmental organisations.

By comparison, eight men across the world are as wealthy as the
poorest 50% of the global population, the report said. A mere 500
people will bequeath wealth worth $2.1 trillion – more than the
current gross domestic product of India – to their heirs over the next
20 years.

Drawing from news reports and its own studies, the Oxfam paper points
to growing gaps in income inequality across the world. In India, for
instance, the chief executive officer of a leading information
technology company earns 416 times more than the firm’s average
employee. This is reflected in India’s wealth distribution. The
richest 10% in India own 80% of its wealth, while the richest 1%
possess 58% of all wealth.

[Graphics]
Note: Percentages in the first decile are negative because they
represent negative wealth, that is debt. This amounts to -$21 billion,
or -0.68% of India's wealth.

Even income growth has been uneven over the years. Between 1988 and
2011, incomes of the poorest 10% of Indians rose by $29, or around Rs
2,000, at an increase of 1% each year. For the richest 10% in the same
period, incomes increased by almost Rs 40,000, with an annual increase
of 25%.

[Graphics]

Oxfam lists several reasons for this inequality, including crony
capitalism and corporations that squeeze employees at lower rungs to
maximise salaries and dividends for high-level executives and
shareholders. This gets exacerbated in the current economic framework,
Oxfam argues, since the surest way to grow wealth is to possess it.
Those who are most rich can afford the best investment advice. Despite
this growth of wealth, governments across the world lose taxes and
valuable income with the super-rich depositing their wealth in tax
havens abroad and manipulating political systems to do so without
repercussion.

Oxfam’s report comes a week after HSBC released a study on social
sector spending in India on January 10. The report, timed between
demonetisation and the budget, notes that India’s expenditure on
social sectors such as health and education is far lower than global
and emerging market standards. However, this expenditure has far
greater impact on growth than capital expenditure on infrastructure.

[Graphics]
In this chart, EM stands for 'emerging markets'. Source: World
Development Indicators, HSBC.

[Graphics]
In this chart, EM stands for 'emerging markets'. Source: World
Development Indicators, HSBC

Governments tend to ignore such expenditure, the report argues,
because their political terms last five years, whereas it takes around
six years for the clear benefits of social expenditure to show.

[Graphics]
In this chart, EM stands for 'emerging markets'. Source: HSBC estimates

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