INEQUALITY IN INDIA
India's roaring growth may not change the story of its great divide, finds economists' poll
A nearly 85% majority of development economists and policy experts, 43 out of 51, in a May 15-June 18 Reuters poll, said they were not confident economic inequality would significantly reduce over the next five years, including 21 who said they had no confidence at all.
Govt mulls more frequent job data surveys
India's Ministry of Statistics and Programme Implementation (MoSPI) is considering increasing the frequency of the Periodic Labour Force Survey (PLFS) from quarterly urban unemployment data to monthly, and shifting the release of rural employment data from annual to quarterly. Officials are also discussing revising the base year for gross domestic product (GDP) and inflation. These efforts aim to leverage technology to enhance efficiency and reduce data lag, ensuring compliance with international standards.
How much an average lower-middle class Indian earns in 2024
A new study by Home Credit India (HCIN) sheds light on the financial situation of lower-middle-class Indians. Titled 'The Great Indian Wallet Study: Consumer behaviour towards key financial aspects', the study surveyed over 2,500 individuals in 17 cities across India including Delhi-NCR, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Ahmedabad, Pune, Lucknow, Jaipur, Bhopal, Patna, Ranchi, Chandigarh, Dehradun, Ludhiana and Kochi. The sample size was approximately 2,500 in the age group of 18-55 years, with an annual income between Rs 2 lakh to Rs 5 lakh.
View: Don't eat the rich, it'll hurt the rest
Many countries have attempted to tax the rich through these taxes without success. They fundamentally militate against simple economic logic - disproportionate amounts are spent on their collection, and evasions are easy. The taxes also disincentivise enterprise and lead to flight of capital, affecting growth.
Wealth Redistribution Tempest: Much ado about nothing (read no vote bank)?
The idea of wealth redistribution proposed by Congress leader Rahul Gandhi has sparked a heated debate in India's political landscape, with Prime Minister Narendra Modi labeling it as 'dangerous'. The discussion revolves around conducting surveys to assess wealth distribution and potential redistribution policies, stirring up controversy and accusations between political parties. The issue highlights growing income inequality and calls for radical measures to address economic disparities. While some experts advocate for progressive taxation and social spending to enhance economic equality, others caution against the potential negative impacts of wealth redistribution on individual incentives and overall economic growth. The ongoing debate underscores the complex challenges of wealth inequality in India and the need for thoughtful and effective solutions to ensure a fair and inclusive society.
Rejig of riches: Study moots robin hood tax for equality
A new study co-authored by economist Thomas Piketty suggests India should impose a wealth tax on the ultra-rich to tackle inequality. Anmol Somanchi, one of the authors, emphasizes the need for progressive wealth taxation and social sector investments.
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No vote-bank threat, less capital-flight risk from wealth tax: Nitin Kumar Bharti
Nitin Kumar Bharti, lead author of a recent World Inequality Lab report, suggests imposing a wealth tax in India to address inequalities, stating it would not affect 99.96% of the population.
Gotta fix those inequality gaps
Since 1947, India has experienced considerable economic expansion, yet the advantages of this growth have not been evenly spread. The era of economic liberalization brought forth fresh avenues and prosperity, but it also contributed to a surge in inequality, a trend further magnified by recent economic upheavals, such as the pandemic. In 1967-68, the top 10% of the population accounted for 36.49% of the total national income.
Study suggests India should impose wealth tax on the ultra-rich to tackle wealth inequality
A World Inequality Lab study recommends India implement a wealth tax on the ultra-rich to combat wealth inequality and boost social sector investments. Proposed measures include a 2% annual tax on wealth over Rs 10 crore and a 33% inheritance tax on estates exceeding the same value. Authors emphasize the need for progressive taxation to address extreme wealth disparity.
India should impose tax on ultra-wealthy to tackle wealth inequality, says study
The paper titled 'Proposals For a Wealth Tax Package to Tackle Extreme Inequalities in India' propose a comprehensive tax package on the ultra-wealthy to tackle the massive concentration at the very top of the wealth distribution and create valuable fiscal space for crucial social sector investments.
Govts, tech firms vow to cooperate against AI risks at Seoul summit
More than a dozen countries and some of the world's biggest tech firms pledged on Wednesday to cooperate against the potential dangers of artificial intelligence, including its ability to dodge human control, as they wrapped up a global summit in Seoul. These dangers also include an AI model that could potentially "evade human oversight, including through safeguard circumvention, manipulation and deception, or autonomous replication and adaptation", they added.
CCI chief flags 'opacity of algorithms', potential 'data dominance' concerns in digital markets
Competition Commission of India (CCI) chief Ravneet Kaur highlighted the opacity of algorithms in assessing their impact on competition, emphasizing the need for competition law to evolve in digital markets. The CCI is closely monitoring digital markets to combat anti-competitive practices. Kaur also announced a forthcoming market study on Artificial Intelligence during the 15th annual day event.
Does Article 39(b) allow government to take over your property?
The 18th Lok Sabha elections spark a debate on inequality in India as Congress proposes a caste census, countered by BJP's accusations. The Supreme Court is re-evaluating Article 39(b) in a property dispute case, which could impact Parliament's ability to enact laws related to wealth distribution.
"British Raj-like conditions" prevailing in India under PM Modi's rule: Priyanka Gandhi
"All the institutions which strengthen democracy are being weakened, be it media or Parliament. Mahatma Gandhi, Pandit Nehru had fought against the British to strengthen the rights of the people, little did they know that a day would come in independent India when the government would be bent upon depriving the people of their rights," she added.
View: Prioritise data-driven analysis, not polemics, to guide discussions on income and wealth inequality
The article explores income and wealth inequality, taxation on the rich, and India's tax/GDP ratio. It questions if India's tax rate is low and analyzes wealth concentration trends and market efficiency, emphasizing the need for a comprehensive understanding of the data and perspectives.
View: In today’s tech-driven landscape, we need new economic thinking on equity and sustainability
In a hyper-connected world, income inequality, debt burdens, and social disparities persist. Urgent innovative strategies are essential to address widening gaps and shift the focus to stakeholder value for human development, Sam Pitroda writes.
Congress chief Kharge rips into PM Modi for "taking words out of context, create communal divide" in open letter
Congress President Mallikarjun Kharge has penned a letter to Prime Minister Narendra Modi, inviting him to discuss the party's 'Nyay Patra' in person, amid the ongoing controversy sparked by the PM's remarks on the Congress manifesto. Kharge alleges that the PM is being misled by his advisors, as the manifesto does not include plans for wealth redistribution or the confiscation of private property. The letter comes in response to Modi's recent speeches targeting the Congress, where he accused the party of advocating for the rights of certain communities at the expense of others.
Sam Pitroda inheritance tax debate: What is inheritance tax in India
What is inheritance tax: When someone passes away, it's important to understand that there are two types of taxes that may apply - estate and inheritance taxes. Estate taxes are calculated based on the total value of the deceased person's possessions as of the date of death, whereas inheritance taxes are charged on the individuals who receive the property.
Life in the light: With solar energy, Sachin Shigwan is trying to bridge energy inequality in rural India
For villages in rural India, lack of electricity prevents people from leading a better life. With solar energy, Sachin Shigwan is trying to make a difference.
India to remain global growth driver in foreseeable future: IMF executive director
Krishnamurthy V Subramaniam, Executive Director of the IMF, predicts India will remain a key driver of global growth, citing consistent 7%+ growth post-COVID. He forecasts 8% growth in Q4, considering the global economic situation. The IMF revised India's 2024 growth projection to 7.8%. Subramaniam highlights India's digital infrastructure as a model for the Global South, emphasizing its role as a public good. He dismisses critics of India's GDP growth, citing statistical experts' trust in the numbers. Subramaniam also addresses Thomas Piketty's report on income inequality, presenting contrasting data.
When inequality shouldn’t be a concern
Milton Friedman and Friedrich Hayek argued that redistributive policies can stifle innovation and productivity. If individuals feel their efforts will be heavily taxed or redistributed, they may not be motivated enough to invest in new ventures or improve productivity, leading to an economic slowdown.
Congress' Rahul Gandhi vows a survey to redistribute the wealth of Indians
Rahul Gandhi vows wealth redistribution if Congress wins, proposing a census to assess population and backward caste status, followed by wealth survey. Economic inequality, rising since the 1990s in India, prompts global concern. Progressive tax systems and cash transfer programs aim at redistribution, akin to models in Finland, Sweden, and the USA.
View: Market fix for inequality
The real danger with the equality messiahs is their favoured policy prescription, namely tax. Applying Western narratives on taxing the rich more on their incomes and wealth is counterproductive in India.
Public spaces often reflect pre-existing inequalities in society: CJI Chandrachud
CJI Chandrachud highlights how public spaces reflect social inequalities. New infrastructure benefits all, addressing issues like lack of facilities for women and persons with disabilities, ultimately aiding in the inclusion of marginalized groups in society.
India needs to grow at 8 pc on sustained basis to create sufficient jobs: KV Subramanian
India needs to grow at 8 per cent on sustained basis to create sufficient jobs to reduce poverty and inequality, India's executive director at International Monetary Fund (IMF) Krishnamurthy Venkata Subramanian said on Wednesday. India's economy grew by better-than-expected 8.4 per cent in the final three months of 2023 - the fastest pace in one-and-half years.
India's richest 1% has highest concentration of wealth in decades, study shows
India's wealth inequality is at a six-decade high with the top 1% owning 40.1% of wealth. Foreign investments led to a surge in billionaires post-1992. PM Modi's tenure saw a widening rich-poor gap amid rapid economic growth.
"Modi's Billionaire Raj more unequal than British Raj": Congress slams Centre over income inequality report
Jairam Ramesh said the share of national income earned by India's top 1 per cent is now at its highest historical levels and is among the highest globally. The rise of top-end inequality has been particularly pronounced between 2014 and 2023, which corresponds to the "dus saal anyay kaal' and the Modi government's policies have directly caused this perverse growth through three methods -- enrich the rich, impoverish the poor and hide the data, he said.
Inequality between top and bottom spenders has reduced: Survey
After a hiatus of nearly a decade, the government has released the results of the Household Consumption Expenditure Survey, which indicate that inequality between top and bottom spenders has reduced across both rural and urban areas since 2011-12.
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