Wealth Of 10 Richest Indians Combined = Four State Economies And Six Ministries
The fortunes of the 10 richest Indians combined are equal to the gross state domestic product of four states and six government ministries, according to an IndiaSpend analysis of government data.
The nine richest Indians now own wealth equivalent to bottom 50 percent of the country. While the top 1 percent owns 52 percent of national wealth, the bottom 60 percent own only 5 percent, according to the January 2019 Oxfam report on global inequality.
While this concentration of wealth is a global trend, wealth in other countries is generally controlled by 1 percent of the population, whereas in India it is in the hands of nine individuals or 0.000000075 percent of India’s population of 1.2 billion.
“Unlike middle-eastern countries and Brazil, which have had historically high levels of inequality but have seen a decline in the share of the top 10 percent in total income, India has seen a secular rise in the share of income accruing to the top 10 percent and top 1 percent of the population,” the Oxfam report said.
The income share of India's top 1 percent rose from approximately 6 percent in 1982–1983 to above 10 percent a decade after, 15 percent by 2000 and to around 23 percent by 2014, according to the World Inequality Report 2018.
India now ranks fourth in the list of countries where the top 1 percent share the highest national income, next only to Brazil, Turkey and Zambia, according to the World Inequality Database, 2017.
Billionaire fortunes in India increased 35 percent in 2018, or by Rs 2,200 crore a day, while 136 million Indians who make up the poorest 10 percent continued to remain in debt since 2004, according to Oxfam report.
Chairman of Reliance Industries Mukesh Ambani had a net worth of Rs 3.3 lakh crore, which is 95 percent of Odisha’s GSDP for 2017-18, according to our analysis, which used data from the Forbes billionaire ranking, the central statistical office and budget 2017-18.
The wealth of Pallonji Mistry, chairman of the 153-year-old Shapoorji Pallonji Group, is estimated at Rs 1.1 lakh crore, which surpasses the Himachal Pradesh GSDP by Rs 477 crore.
Dilip Shanghvi, the founder of Sun Pharmaceuticals, had a net worth of Rs 88,313 crore in 2017-18, which is approximately four times the GSDP of Meghalaya. With a population of 29 lakh, Meghalaya’s GSDP was Rs 24,202 crore for 2017-18, according to government data.
“Governments are exacerbating inequality by underfunding public services such as healthcare and education,” the Oxfam report said.
“While under taxing corporations and the wealthy, they are failing to clamp down on tax dodging.”
Wipro chairman Azim Premji had a net worth of Rs 1.4 lakh crore, which was almost 95 percent of the Rs 1.5 lakh crore allocated for the consumer affairs, food and public distribution ministry for 2017-18.
Lakshmi Mittal, CEO of world’s largest steel producer ArcelorMittal, had a net worth Rs 1.2 lakh crore, which was twice the budget sanctioned for the ministry of road transport and highways.
The budget sanctioned for the home ministry in 2017-18 was Rs 97,187 crore, which is lower than the Rs 1.2 lakh crore wealth of the Hinduja brothers.
The Godrej family, which manages the Godrej group, has a net worth of Rs 98,126 crore, which was twice the budget for the health ministry.
Kumar Mangalam Birla, chairman of the Aditya Birla Group, had a net worth of Rs 87,612 crore, which is four times the budget for the ministry of women and child development.
The wealth of Gautam Adani, founder of Adani Group, was Rs 83,407 crore, which is four times the funds allocated for the ministry of drinking water and sanitation in 2017-18.
(Jasmin Nihalani, a student of journalism and mass communication, is an intern with IndiaSpend.)
This copy was published in a special arrangement with IndiaSpend.