The concept of wealth inequality is a subject of global discussion, and India is no exception. The Indian economy is growing at a steady pace, but the wealth disparity is widening. As per a recent report, India’s richest 1% holds more than 42% of the country’s wealth, while the bottom 50% owns only 2.5%. The question that arises is, how much wealth does one need to be in the top 1% of India?
According to the Global Wealth Report 2021 by Credit Suisse, an individual in India needs a net worth of $2.5 million or above to be in the top 1% of the country’s population in terms of wealth. However, this figure varies from city to city and region to region.
For instance, in Mumbai, which is considered the financial capital of India, one needs a net worth of $4.8 million to be in the top 1%, while in Delhi, the figure stands at $3.6 million. The reason for this disparity is that cities like Mumbai and Delhi have a high cost of living, and hence, the threshold for being considered wealthy is also higher.
Moreover, the report also highlights that the number of ultra-high-net-worth individuals (UHNIs) in India is on the rise. UHNIs are those individuals who have a net worth of $30 million or more. The report suggests that India has around 11,000 UHNIs, and their combined wealth is estimated to be around $3.2 trillion.
The rise of UHNIs in India can be attributed to the country’s growing economy, which has created a conducive environment for entrepreneurship and wealth creation. However, this also highlights the wealth inequality in the country, where a small percentage of the population holds a significant portion of the country’s wealth.
Furthermore, the pandemic has exacerbated the wealth gap in the country. The lockdowns and job losses have disproportionately affected the economically weaker sections of society, while the rich have managed to increase their wealth during this period.
Policymakers must take steps to reduce the wealth gap by introducing policies that encourage inclusive growth. One such policy could be to increase public spending on education and healthcare, which can help reduce poverty and improve social mobility. Another policy could be to introduce progressive taxation, which would require the wealthy to pay higher taxes, reducing the concentration of wealth in a few hands.
Moreover, measures can be taken to encourage entrepreneurship and innovation, which can create more job opportunities and wealth creation for the masses. This can be done by providing access to credit, training programs, and technology infrastructure to budding entrepreneurs.
It is also crucial to improve income distribution by ensuring that the workers are paid fair wages for their work. This can be done by introducing minimum wage laws and strengthening the labor laws that protect workers’ rights.
The wealth gap in India is widening, with a small percentage of the population holding a significant portion of the country’s wealth. It is essential to address this issue by introducing policies that encourage inclusive growth and income distribution. It is only through the equitable distribution of wealth that India can achieve its goal of becoming an economic superpower while ensuring that all sections of society benefit from this growth.
In conclusion, the threshold for being in the top 1% of the wealth in India is $2.5 million, with variations depending on the city or region. The rise of UHNIs in the country highlights the growing wealth inequality, which needs to be addressed. As the country strives to become an economic superpower, it is essential to ensure that the benefits of growth are distributed equally among all sections of society.