India’s richest 1% now own a much larger share of the nation’s wealth than before. Between 2000 and 2023, their share grew by 62%, a recent report from the World Inequality Database reveals. This report was prepared under the South African Presidency of the G20 and led by economist Joseph Stiglitz. It warns that this rising gap between the rich and the poor could harm India’s democracy, economy, and efforts to fight climate change.

Wealth Growing Faster at the Top

The top 1% of India’s population, often called the “Billionaire Raj,” now hold over 40% of the country’s wealth. This is the highest concentration in more than 60 years. The rich have made their wealth grow by 62% since 2000, faster than in many other countries, including China. Much of this wealth comes from big businesses, real estate, and the booming stock market.

On the other hand, half of India’s population owns just about 3% of the wealth. This shows a clear and growing divide between the very rich and the majority of people. The top 1% also earn almost 23% of the national income, gaining a larger share over the years.

The Effects on Society and Economy

This big gap in wealth has several effects on India. Many people still struggle with poverty, poor health, and limited education. Rising inequality makes it harder for poor people to improve their lives. It also creates social tension and threatens political stability.

Income inequality in India has increased over the past few decades. It is now worse than in the 1950s, according to a measure called the Gini coefficient. This shows that economic growth has not been shared fairly across all sections of society.

What Can Be Done?

The report stresses that this unequal wealth distribution is caused by policy choices, not by fate. It suggests the government should increase taxes on the very rich and spend more on health, education, and social welfare. By doing this, India can ensure that economic growth benefits everyone, not just the richest few.

Experts say stronger laws and better policies can reduce this gap. This includes fairer taxes and better support for poor people. If India fails to act, the wealth gap will only grow, harming the country’s future.

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