By Meryl SebastianBBC News, Kochi
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India's top 1% owned more than 40.5% of its total wealth in 2021, according to a new report by Oxfam.
In 2022, the number of billionaires in the country increased to 166 from from 102 in 2020, the report said.
Meanwhile, it added that the poor in India "are unable to afford even basic necessities to survive".
The charity called on India's finance minister to levy a wealth tax on the ultra rich to tackle this "obscene" inequality.
The report - Survival of The Richest - was released as the World Economic Forum began in Davos, Switzerland.
The report highlighted the large disparity in wealth distribution in India, saying that more than 40% of the wealth created in the country from 2012 to 2021 had gone to just 1% of the population while only 3% had trickled down to the bottom 50%.
In 2022, the wealth of India's richest man Gautam Adani increased by 46%, while the combined wealth of India's 100 richest had touched $660bn.
In 2022, Mr Adani was ranked the second richest person in the world on the Bloomberg's wealth index. He also topped the list of people whose wealth witnessed the maximum rise globally during the year.
Meanwhile, the country's poor and middle class were taxed more than the rich, Oxfam said.
Approximately 64% of the total goods and services tax (GST) in the country came from the bottom 50% of the population, while only 4% came from the top 10%, the report said.
"India is unfortunately on a fast track to becoming a country only for the rich," Oxfam India CEO Amitabh Behar said. "The country's marginalised - Dalits, Adivasis, Muslims, women and informal sector workers are continuing to suffer in a system which ensures the survival of the richest."
The rich, currently, benefited from reduced corporate taxes, tax exemptions and other incentives, the report added.
To correct this disparity, the charity asked the finance minister to implement progressive tax measures such as wealth tax in the upcoming budget.
A 2% tax on the entire wealth of India's billionaires would support the nutrition of the country's malnourished population for the next three years, the report said.
A 1% wealth tax could fund the National Health Mission, India's largest healthcare scheme for more than1.5 years, it added.
Taxing the top 100 Indian billionaires at 2.5% or taxing the top 10 Indian billionaires at 5% would nearly cover the entire amount required to bring an estimated 150 million children back into school, Oxfam said.
"It's time we demolish the convenient myth that tax cuts for the richest result in their wealth somehow 'trickling down' to everyone else," said Gabriela Bucher, the executive director of Oxfam International.
Taxing the super-rich was necessary for "reducing inequality and resuscitating democracy", she added.
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As a seasoned expert in economic analysis and wealth distribution, I'll delve into the key concepts highlighted in the provided article about income inequality in India, as reported by Oxfam.
1. Wealth Concentration: The article emphasizes the stark concentration of wealth among India's elite. In 2021, the top 1% of the population owned more than 40.5% of the country's total wealth. The report unveils a concerning trend, indicating that from 2012 to 2021, over 40% of the wealth created in India went to just 1% of the population.
2. Increase in Billionaires: In 2022, the number of billionaires in India surged from 102 in 2020 to 166. This exponential growth in billionaire numbers contributes to the widening wealth gap, raising questions about the equitable distribution of resources.
3. Wealth Growth of Individuals: The article singles out Gautam Adani, India's richest man in 2022, whose wealth increased by a staggering 46% during that year. His rise to the second position on Bloomberg's wealth index and topping the list for the highest wealth growth globally underscores the magnitude of wealth accumulation by the super-rich.
4. Tax Disparities: Oxfam's report draws attention to the tax system, revealing that the poor and middle class in India bear a disproportionate tax burden compared to the wealthy. Approximately 64% of the total Goods and Services Tax (GST) comes from the bottom 50% of the population, while only 4% is contributed by the top 10%.
5. Oxfam's Recommendations: To address this wealth inequality, Oxfam urges India's finance minister to implement progressive tax measures. The charity proposes a 2% tax on the entire wealth of India's billionaires, stating that it could support the nutrition of the malnourished population for the next three years. Additionally, a 1% wealth tax could fund India's National Health Mission for over a year.
6. Social Impact of Wealth Tax: The article outlines the potential social impact of implementing wealth taxes. For instance, taxing the top 100 Indian billionaires at 2.5% or the top 10 at 5% could generate funds to bring an estimated 150 million children back into school.
7. Critique of Current Policies: The report criticizes existing policies that favor the rich, highlighting reduced corporate taxes, tax exemptions, and other incentives that benefit the wealthy. This critique forms the basis for Oxfam's call for corrective measures in the form of wealth taxes to mitigate inequality.
In conclusion, the article sheds light on the alarming wealth disparity in India, providing evidence through statistics, individual case studies, and recommendations for policy changes to address this pressing issue.
