Shocking: India's richest 1% corner 73% of wealth generation

Agencies
January 22, 2018

Davos, Jan 22: The richest 1 per cent in India cornered 73 per cent of the wealth generated in the country last year, a new survey showed today, presenting a worrying picture of rising income inequality.

Besides, 67 crore Indians comprising the population's poorest half saw their wealth rise by just 1 per cent, as per the survey released by the international rights group Oxfam hours before the start of the annual congregation of the rich and powerful from across the world in this resort town.

The situation appears even more grim globally, where 82 per cent of the wealth generated last year worldwide went to the 1 per cent, while 3.7 billion people that account for the poorest half of population saw no increase in their wealth.

The annual Oxfam survey is keenly watched and is discussed in detail at the World Economic Forum Annual Meeting where rising income and gender inequality is among the key talking points for the world leaders.

Last year's survey had showed that India's richest 1 per cent held a huge 58 per cent of the country's total wealth -- higher than the global figure of about 50 per cent.

This year's survey also showed that the wealth of India's richest 1 per cent increased by over Rs 20.9 lakh crore during 2017 -- an amount equivalent to total budget of the central government in 2017-18, Oxfam India said.

The report titled 'Reward Work, Not Wealth', Oxfam said, reveals how the global economy enables wealthy elite to accumulate vast wealth even as hundreds of millions of people struggle to survive on poverty pay.

"2017 saw an unprecedented increase in the number of billionaires, at a rate of one every two days. Billionaire wealth has risen by an average of 13 per cent a year since 2010 -- six times faster than the wages of ordinary workers, which have risen by a yearly average of just 2 per cent," it said.

In India, it will take 941 years for a minimum wage worker in rural India to earn what the top paid executive at a leading Indian garment firm earns in a year, the study found.

In the US, it takes slightly over one working day for a CEO to earn what an ordinary worker makes in a year, it added.

Citing results of the global survey of 70,000 people surveyed in 10 countries, Oxfam said it demonstrates a groundswell of support for action on inequality and nearly two-thirds of all respondents think the gap between the rich and the poor needs to be urgently addressed.

With Prime Minister Narendra Modi attending the WEF meeting in Davos, Oxfam India urged the Indian government to ensure that the country's economy works for everyone and not just the fortunate few.

It asked the government to promote inclusive growth by encouraging labour-intensive sectors that will create more jobs; investing in agriculture; and effectively implementing the social protection schemes that exist.

Oxfam also sought sealing of the "leaking wealth bucket" by taking stringent measures against tax evasion and avoidance, imposing higher tax on super-rich and removing corporate tax breaks.

The survey respondents in countries like the US, UK and India also favoured 60 per cent pay cut for CEOs.

The key factors driving up rewards for shareholders and corporate bosses at the expense of workers' pay and conditions, Oxfam said, include erosion of workers' rights; excessive influence of big business over government policy- making; and the relentless corporate drive to minimise costs in order to maximise returns to shareholders.

About India, it said the country added 17 new billionaires last year, taking the total number to 101. The Indian billionaires' wealth increased to over Rs 20.7 lakh crore -- increasing during last year by Rs 4.89 lakh crore, an amount sufficient to finance 85 per cent of the all states' budget on health and education.

It also said India's top 10 per cent of population holds 73 per cent of the wealth and 37 per cent of India's billionaires have inherited family wealth. They control 51 per cent of the total wealth of billionaires in the country.

Oxfam India CEO Nisha Agrawal said it is alarming that the benefits of economic growth in India continue to concentrate in fewer hands.

"The billionaire boom is not a sign of a thriving economy but a symptom of a failing economic system. Those working hard, growing food for the country, building infrastructure, working in factories are struggling to fund their child's education, buy medicines for family members and manage two meals a day. The growing divide undermines democracy and promotes corruption and cronyism," she said.

The survey also showed that women workers often find themselves at the bottom of the heap and nine out of 10 billionaires are men.

In India, there are only four women billionaires and three of them inherited family wealth.

"It would take around 17.5 days for the best paid executive at a top Indian garment company to earn what a minimum wage worker in rural India will earn in their lifetime (presuming 50 years at work)," Oxfam said.

Comments

Ajay
 - 
Monday, 22 Jan 2018

In reality only 1% understand the value of money, rest 99% are busy with padmaavati to be released or not or celebrating the victory in bhima koreogaon

Babu Gowda
 - 
Monday, 22 Jan 2018

The black money held by some sections of the population in India might not have been accounted in the 73% money made by 1% of population. If all the money is accounted, it could be much more than 82%. In poorer countries like India, disparity between the rich and poor will be very high and widening year after year. It is a time bomb. 

Mohan
 - 
Monday, 22 Jan 2018

Still government says ...working for Poor ... but reality is opposite ...Working for rich and corporates .. 

Ravi
 - 
Monday, 22 Jan 2018

Increasing disparity always lead to social disorder and sometime revolts and civil war too !!! Rich''s should at their own should deploy their wealth for upliftment of downtrodden people else their wealth would not remain secured

Ganesh
 - 
Monday, 22 Jan 2018

it is evident that the nexus between politicians taking favourable decisions to benefit business tycoons and most of them are from same state where top leaders from! Why the hell other states are ignored!!

Chakravarthy
 - 
Monday, 22 Jan 2018

Rich save for generation and corner money where as poor do not know what will be their financial position tomorrow.The wide gap is not good for the country.

Karthik
 - 
Monday, 22 Jan 2018

Modi, what you have done?

Jinesh
 - 
Monday, 22 Jan 2018

A study should be done how this one percent spend their money, whether this wealth is getting invested in India or taken abroad

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News Network
July 25,2020

Dubai, Jul 25: The founder of NMC Health, BR Shetty, has had a worldwide freezing order placed on his assets at the request of a lender that claims he has defaulted on a loan of more than $8 million (Dh29.4m).

The order was granted to Credit Europe Bank (Dubai) last month ahead of a claim filed at the DIFC Courts against Mr Shetty, New Medical Centre Trading and NMC Healthcare.

The lender said in its claim they “are jointly and severally liable” for the repayment of money initially secured through a credit agreement in December 2013 and renegotiated in December last year. Credit Europe Bank is an Amsterdam-headquartered institution specialising in trade and commodities finance with operations in nine countries.

The credit agreement was guaranteed by two security cheques which the bank said in its claim were signed by Mr Shetty – one drawn on his personal account and another on the account of New Medical Centre Trading – that have been "dishonoured upon presentation due to insufficient funds".

The bank claimed Mr Shetty “has now fled the jurisdiction of the UAE to India” and that there was a risk of his “substantial” assets in the Emirates being dissipated.

The assets frozen include properties in Abu Dhabi and Dubai, as well as shares in NMC Health, Finablr, BRS Investment Holdings and other companies. It allows for up to $7,000 per week to be spent on “ordinary living expenses and reasonable sum[s] on legal advice and representation”, a DIFC Courts document granting the freezing order shows.

Credit Europe Bank declined to comment when contacted by The National, stating it does not comment on ongoing litigation proceedings. Representatives for Mr Shetty and for NMC Healthcare, which is now being run by administrators Alvarez & Marsal, also declined to comment.

NMC Healthcare was founded by Mr Shetty in 1975 and grew from a single hospital into the UAE’s biggest privately-owned healthcare operator, which employed 2,000 doctors and 20,000 other staff. The company was listed on the London stock exchange and at its peak was valued at £8.58 billion (Dh40bn). However, its shares slumped after short seller Muddy Waters Research issued a report in December 2019 alleging the company had inflated its cash balances, overpaid for assets and understated its debts. This led to a string of damaging revelations by the company, including the fact that its debt was materially higher – at $6.6bn – than the $2.1bn on its balance sheet. NMC Healthcare was placed into administration in April by its biggest creditor, Abu Dhabi Commercial Bank, but its UAE businesses continue to trade as a going concern.

Mr Shetty said in a statement issued in April that he has been a victim of fraud committed by "a small group of current and former executives” at companies owned by him. He said bank accounts were created in his name and transactions were made without his knowledge, and that loans, cheques and bank transfers were also fraudulently guaranteed in his name using his forged signature.

In response to the claim filed by Credit Europe Bank (Dubai) at the DIFC Courts, Mr Shetty says he did not personally guarantee loans made to NMC Trading or NMC Healthcare and that the signatures used on cheques guaranteeing the loans are forgeries. His defence cites the opinion of “Dr Al Bah, an independent, experienced and qualified forensic document examiner”, that someone other than Mr Shetty signed the lending agreements and cheques.

An application by NMC Trading and NMC Healthcare to the DIFC Courts to have the claim against it heard in private for fear of triggering claims by other lenders – the group owes money to around 80 local, regional and international lenders – was dismissed, given that the appointment of administrators at the group and allegations of fraud at the company are already in the public domain.

Both companies have indicated to DIFC Courts that they intend to contest the claim against them.

Comments

UAE Muslim
 - 
Sunday, 26 Jul 2020

give money to RSS now to kill muslim....GOD will turn the table for moran like you BR,...shamed of tulu guy cheated the UAE govennment...not root in hell

ANONYMOUS
 - 
Saturday, 25 Jul 2020

amount should be 8 billion dollar and not 8 million dollar

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News Network
February 12,2020

Belagavi, 12: Even though the investigation into the four abandoned country pistols that were recovered by the Karnataka police on the outskirts of Waghawade village in Belagavi taluk last weekend did not make any headway, the police are verifying if the weapons had been used by the assassin of Gauri Lankesh for training.

Four country pistols were found abandoned on the outskirts of Waghawade on Sunday. Locals informed that the police had taken the weapons for inspection.

Prima facie it appeared that the weapons were rusted and had not been used for long. Cases had been registered against unidentified persons and investigations were in progress.

After reports that the weapons could have been used for training by the assassin of Gauri Lankesh in the forests in Khanapur, a few kilometres away from the spot wherein they were found, police have been looking into this angle too.

Sources said the condition of the weapons indicated that they have not been used for decades but to allay doubt all aspects were being looked into.

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News Network
February 11,2020

Feb 11: China reported 108 new coronavirus deaths on February 10, the highest daily toll since the outbreak began in Wuhan late last year, as two senior officials in the hard-hit province of Hubei were removed from their jobs.

The total number of deaths on the mainland reached 1,016 in the 24 hours until midnight, the National Health Commission said on Tuesday.

Some 2,478 new cases were confirmed, bringing the total to 42,638.

Of the new deaths, 103 were in the province of Hubei, including 67 in the provincial capital of Wuhan. The virus is thought to have originated there in a market that sold seafood as well as wild animals.

Two senior health officials in the province - Zhang Jin who was Party Secretary of the health commission for Hubei and Ling Yingzi who was director of the Hubei Provincial Health Commission - were both removed from their posts, state media reported on Tuesday,  a day after Chinese President Xi Jinping visited health facilities in Beijing.

In his first public appearance since the outbreak began, Xi donned a face mask and had his temperature checked while visiting medical workers and patients in the capital.

"We have seen very little of Xi Jinping since the outbreak began but he was out and about in Beijing on Monday," Al Jazeera's Katrina Yu said from Beijing. "He has been trying to rally the troops saying: 'We can win this battle.' But it's also a sign that the battle is far from over."

The other fatalities on Monday were in the provinces of Heilongjiang, Anhui and Henan and the cities of Tianjin and Beijing, the National Health Commission said.

During a meeting chaired by Premier Li Keqiang on Monday, a group of leaders tasked with beating the virus said it would work to solve raw material and labour shortages and boost supplies of masks and protective clothing.

They said nearly 20,000 medical personnel from around the country had already been sent to Wuhan, and more medical teams were also on the way.

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