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
April 28,2020

Bengaluru, Apr 28: Karnataka has found that the rapid antibody test kits for COVID-19 that the Centre supplied to the state have only 47% sensitivity. The state will be returning the kits to the Indian Council of Medical Research (ICMR).

Karnataka had received 11,400 rapid antibody test kits from the ICMR a few days back, out of which it had sent around 200 of them to NIMHANS for validation.

After the ICMR, on Monday, sent a circular to all states to return the test kits to the suppliers, Dr CN Manjunath, Director, Jayadeva Institute of Cardiovascular Sciences and Research, and nodal officer for lab testing in the state's COVID-19 task force, said, "We have cancelled the orders we placed to Guangzhou Wondfo Biotech and Zhuhai Livzon Diagnostics for one lakh rapid antibody test kits. Since the ICMR supplied us with 11,400 kits out of the 6.5 lakh kits it procured, we will be returning the kits to them."

Manjunath told said that the validation at NIMHANS revealed the kits to have only 47% sensitivity. Sensitivity is the ability of a test to identify the true-positives in a population, i.e., the actual number of people who've been infected with the disease. With the rapid antibody testing kits being shelved, the state's plan to randomly test high risk groups has taken a backseat. 

So far, the state has tested 43,791 samples. 

Karnataka now has 22 testing facilities -- 14 government and seven private labs. Many private labs have not tested any samples so far because of the lack of test kits (the state has made it clear that it will not provide test kits to private labs). So, getting an ICMR approval for testing has become a moot point.p

Agreeing to the setback the state's plans of ramping up testing has taken, Manjunath said, "It is true that RT-PCR test kits are in shortage. Even Pune's Mylabs had a shortage in supplying test kits. But we are relying on institutes like Kidwai, Narayana Health and Biocon's Syngene that have received approval for testing. They're big institutes and we hope that they will test a large number of samples."

On reports that the Centre has RT-PCR test kits that will last for only a week, he said, "We have test kits that will last for eight to 10 days. We have ordered for more. We are hoping to receive them before the current kits run out."

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News Network
March 29,2020

Mangaluru, Mar 29: Infosys Foundation Chairperson Sudha Murty has sent the second consignment of N95 Masks, Personal Protection Equipment (PPE) and Sanitisers worth about Rs 73 lakhs, City police Commissioner Dr P S Harsha said on Sunday.

"These will be primarily used by Doctors, Nurses and Paramedics of Wenlock Hospital here and masks by the frontline staff of ASHA and police at risk of exposure to the virus,” Dr Harsha tweeted on Sunday.

The district has received the first consignment with critical medical equipment worth Rs 28 lakh from the Infosys foundation on Saturday, March 28.

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News Network
January 31,2020

Jan 31: Twenty-three children aged between six months and 15 years, who had been taken hostage by a murder accused after inviting them to his daughter's birthday party, were rescued late on Thursday night after police killed their captor in a village here.

The hostage drama began at Kasaria village in the afternoon and continued for about eight hours.

"The accused was killed and there were about 23 children who were rescued safely," Additional Chief Secretary (Home) Awanish Awasthi told reporters at a hurriedly called press conference at 1.20 am.

"The accused had invited the children for the birthday party of his daughter and held them hostage. It started about 5.45 pm on January 30 and continued for about eight hours," Director General of Police (DGP) O P Singh said, adding that in the entire operation they had tried to "engage" the accused and were successful.

He said the accused, identified as Subhash Batham, had initially released a six-month-old girl by handing her over to his neighbour from a balcony.

Eyewitnesses said a restive crowd gathered outside the house where the children were kept with some women wailing and praying for their safe release.

The crowd broke open the door of the house to rescue the children, they said.

As the accused opened fire, the police retaliated killing him on the spot.

In the exchange of fire, the captor's wife was injured, but none of the children suffered any injury.

A man and two policemen also suffered bullet injuries.

The motive of the accused was not known immediately.

Chief Minister Yogi Adityanath monitored the situation in Farrukhabad, which is nearly 200 km from state capital Lucknow.

"The CM as soon as he got to know about the incident called a meeting of the crisis management group and personally monitored the situation and ensured children are rescued safely," Awasthi said.

Earlier, a team of NSG (National Security Guard) commandos had taken a special aircraft to reach Farukhabad, a senior security official in Delhi said.

Police said Batham, a murder accused, seemed to be mentally unstable.

Inspector-General of Police, Kanpur Range, Mohit Agarwal, said, "The man called the children for a birthday party and held them hostage in the basement of the house. He fired six shots from inside the building."

Batham initially wanted to talk to the local MLA, but refused to speak to the leader when he arrived, Agarwal said.

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