Mumbai Overtakes Beijing in Billionaire Count, Exposing India’s Wealth Gap

APP

Islamabad: The surge in the number of billionaires in India, particularly in Mumbai, has reignited discussions about the country’s economic landscape.

While some may view this as a testament to India’s economic growth, it also underscores the persistent issue of inequality and disparity within Indian society.

The latest report from the Hurun Research Institute showcasing Mumbai’s rise as the Asian city with the highest number of billionaires prompts reflection.

Despite India’s economic strides, questions arise when juxtaposed with its per capita GDP, which falls behind countries like Bangladesh. This dissonance begs the question: Should the proliferation of billionaires be hailed as progress or viewed with concern?

The statistics reveal a stark reality. India witnessed a significant influx of new billionaires, with the total count surging by almost 45 percent year-on-year to 271, as reported by the Global Times. Meanwhile, India’s per capita GDP in 2022 stood at $2,411, trailing behind Bangladesh’s $2,688, as per World Bank data.

This disparity in wealth distribution has long been a glaring issue, casting shadows over India’s economic narrative. Despite successive waves of economic growth, the widening wealth gap persists, posing challenges to India’s long-term development prospects.

A recent study by the World Inequality Lab further underscores this, revealing that income and wealth inequality in India have reached historic highs, with the top 1 percent holding a disproportionate 40 percent of the nation’s wealth.

This narrative sheds light on the daunting hurdles that lie ahead for India’s economy. Addressing the deep-rooted wealth disparity requires concerted efforts aimed at inclusive growth and equitable distribution of resources.

Without such measures, India risks stalling its economic potential and perpetuating social divisions. Thus, while the rise of billionaires may symbolize economic success, it also serves as a poignant reminder of the underlying challenges that demand urgent attention and action.

 Furthermore, a striking statistic underscores the stark income disparity within India: fewer than 10,000 individuals out of 920 million adults earn an average of 480 million rupees ($5.7 million), which is more than 2,000 times the average income of $2,800.

This means that nine out of every ten Indians earn less than the average income. This imbalance is particularly jarring in a country that boasts being one of the world’s largest agricultural producers yet harbors millions of citizens facing hunger.

India’s plight is epitomized by its ranking of 111 out of 125 countries in the Global Hunger Index released in October 2023, marking its hunger level as “serious.” The nation, with a population of 1.4 billion, accounts for a quarter of the world’s undernourished populace, with over 190 million people suffering from hunger.

As the number of Indian billionaires rises amid this widening wealth gap, it becomes increasingly apparent that the concentration of resources and wealth in the hands of a few impedes the ability of ordinary citizens to partake in the benefits of economic progress.

This trend poses several concealed risks to the Indian economy. Firstly, it curtails consumption potential among the majority, directly impacting market demand and growth dynamics.

Secondly, wealth inequality fuels social unrest, disrupting economic activities and undermining investor confidence.

Thirdly, it exacerbates the unequal access to education resources, hindering the majority from enhancing their standard of living. Furthermore, the absence of an educated workforce jeopardizes India’s demographic dividend.

True social progress and national prosperity hinge on the comprehensive well-being and sustainable development of the entire populace, not just a privileged few. The trajectory of India’s economic growth cannot be sustained solely by the pursuit of elite wealth.

While some forecast India to become the world’s third-largest economy by 2027, such a feat would be hollow if it turns a blind eye to its wealth inequality dilemma.