Inequality Report Released: Top 10% Indians Hold 57% of National Income
- Top 10 per cent in India hold 57 per cent of the total national income in 2021 while the bottom 50 per cent’s share remains 13 per cent.
- Global income has dropped in 2020, half of which is attributed to rich countries.
- In India, only top 1 per cent has largely benefited from the economic reforms.
According to the latest World Inequality Report India stands out as a “poor and very unequal country, with an affluent elite”. The report stated that top 10 per cent in India hold 57 per cent of the total national income in 2021 while the bottom 50 per cent’s share remains 13 per cent.
The report is authored by economist and co-director of the World Inequality Lan, Lucas Chancel along with noted economists Thomas Piketty, Gabriel Zucman and Emmanuel Saez. The report stated that there has been a drop in the global income in 2020, half of this drop is attributed to rich countries. However, the rest was flagged in low-income and emerging nations, primarily due to the impact of South and Southeast Asia, and more precisely India”.
The report states that “when India is removed from the analysis, it appears that the global bottom 50 per cent income share actually slightly increased in 2020”.
According to the report, India’s middle class is relatively poor with an average wealth of only Rs. 7,23,930 or 29.5 per cent of the total national income as compared to the top 10 per cent nationals who own Rs. 63,54,070 or 65 per cent of total national income.
Since the mid-1980s, India has followed deregulation and liberalization policies that have led to one of the most extreme increase in income and wealth inequality in the world. The report has confirmed that the top 1 per cent has largely benefited from the economic reforms, growth among low and middle income groups has been relatively slow and poverty persists.