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 6,2020

Riyadh, July 6: The government of Saudi Arabia has announced health protocols to prevent the spread of the new coronavirus in the 2020 Hajj season, banning gatherings and meetings between pilgrims.

Saudi Arabia decided in June to limit the number of domestic pilgrims attending the Hajj to around 1,000 to prevent the spread of the coronavirus, after barring pilgrims abroad from the rite for the first year in modern times.

Touching the Kaaba, the holiest site in Islam, will be banned during the Hajj this year, and a social distancing space of a meter and a half between each pilgrim during the rituals including mass prayers and while in the Kaaba circling area will be imposed, a statement by the Center for Disease Prevention and Control (CDC) elaborated.

Also, access to holy Hajj sites at Mina, Muzdalifah and Arafat will be limited to those with Hajj permits starting Sunday July 19 till Aug. 2 2020, and wearing masks all the time will be mandatory for both pilgrims and organisers.

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News Network
April 12,2020

Raipur, Apr 12: As many as 108 out of the 159 people that were quarantined by the Chhattisgarh government last week for allegedly taking part in Delhi’s Tablighi Jamaat congregation are Hindus, according to reliable sources. 

The names of these 159 people, who were said to be in Delhi’s Nizamuddin area when the Tablighi Jamaat congregation was held mid-March, were mentioned in a list issued by the state home department last month. 

The list has been accessed by the many media outlets. But, Raipur Collector S. Bharti Dasan and the state’s Principal Secretary, Home, Subrata Sahu, claimed no such list was issued.

However, a senior state home department official, who didn’t want to be named, said: “Listing of the names was done on the basis of location of mobile phones traced in Nizamuddin in the month of March during the period when congregation of Tablighi Jamaat was held.

“It was subsequently sent to the chief medical officers in the respective districts for further action,” the official added.

These 159 people have either been quarantined at their homes or at government isolation centres. The quarantine exercise took place between 31 March and 1 April.

Interestingly, almost all the people named in the list have denied attending the massive Jamaat congregation, which had seen the participation of over 3,000 people, including foreigners.

Under quarantine “forcefully”, these people alleged they are facing social boycott as they have been “linked to the Tablighi”.

Those placed under quarantine, told media if their phone locations have shown their presence in the Nizamuddin area that didn’t necessarily mean they had attended the Tablighi congregation.

“My neighbours are no longer like my family. After 31 March, I have received more than 500 calls (from relatives and friends) and had to convince them that I didn’t attend the Jamaat event,” Umesh Pandey, a resident of Ambikapur, said.

“People in my area have started saying that some Brahmins took part in the event. I have no objection to being kept in quarantine, but it should be explained why it is being done,” said Pandey, who is a consumer rights activist.

Pandey said, like every year, he had gone to Delhi in March to participate in a consumer protection programme and had stayed at a hotel in Nizamuddin. “I came back on 17 March. After I was quarantined, a false propaganda is being spread about me that I am linked with Tablighi Jamaat activities.”

Pandey said he and his family are now being “looked at as suspects”. 

Kamal Kumar Popatani, a businessman from Bilaspur district, has faced similar problems. Popatani and his family have been living in isolation since 31 March.

“I am completely flabbergasted by this step taken by the state government. I always visit Delhi to procure items for my shop. This time too I had completed my procurement and had returned home on 16 March. Everything was usual till 30 March, but suddenly after 31 March, when this so-called list of 159 alleged suspects was released by the government, we were placed under isolation,” Popatani said.

“My own family members, neighbours and everyone I know are now accusing me that I had joined the Tabligi Jamaat gathering. How can it ever happen? This strange attitude of the government has made my entire family a victim of social boycott.”

Trader Abdul Rahman, a resident of Lutra Sharif area of Bilaspur district, also echoed similar sentiments.

“I returned from Delhi along with my wife on 15 March, but my entire family has been kept in isolation since 31 March. All this is way beyond my comprehension… Blood samples of the entire family were taken. Now everyone is keeping a distance from us and calling us corona suspects,” said Rahman, who had gone to Delhi for a holiday.

“People not only from my village but also in the nearby villages are pointing fingers at me and my family… We are the ones who condemn Tablighi Jamaat and their activities. We have nothing to do with them. The quarantine… has brought…infamy to us,” he added.

In another goof-up, the list even includes names of some people who no longer live in the state but carried mobile numbers issued in Chhattisgarh. One such name is that of BSF sub-inspector Shantanu Mukherjee, who was working in Bhilai about two years ago, but is currently posted in Delhi.

“What kind of list is this? Who released it in the first place? At first, I received a call from the Covid-19 control room in Chhattisgarh and then from the State Police Control Centre. They inquired about my health and current place of posting,” said Mukherjee, whose office is located close to the Nizamuddin area. 

Makkhan Singh Yadav, a sub-inspector with the CRPF, is another case in point. Yadav, who is posted somewhere close to Nizamuddin, had bought a SIM card from Dantewada, when he was posted there five years ago.

“I had received calls from both Delhi and Chhattisgarh police after being marked as a corona suspect. But when I explained the reality to them, no calls were made thereafter. I could not understand how all this is taking place,” said Yadav, who is a native of Rampur, Uttar Pradesh.

A first-year Delhi University student, who belongs to Mahasamund district of Chhattisgarh, has been kept under isolation at a local government hospital.

The student, who didn’t want to be named, said she had gone to Nizamuddin railway station to catch a train for Chhattisgarh.

“I came home immediately after it was announced that educational institutions are shutting down. After returning from Delhi, I spent around 19 days at my own home, but suddenly I was admitted to the hospital on 1 April. Why have I been brought here (hospital) if I have no symptoms? All this feels like some sort of torture.”

“Despite my repeated denial, I was brought here by the health department on the pretext of being associated with the Tablighi Jamaat,” she said. 

Asked about the Tablighi quarantine list, principal secretary Sahu said: “The government has issued no such list. We have received inputs from the social media about three such lists but the state government has not officially prepared any list.

“All those put under quarantine have been done as per the orders issued by the state government. This order states that those who came to the state after 1 March should be kept under isolation,” he added.

Raipur Collector Dasan refused to say anything about the list and added that people have been kept under quarantine after obtaining their “detailed travel history” based on the guidelines issued by the ICMR.

On the allegation of social boycott, Dasan said: “No person or their families placed under home quarantine or isolation should be subjected to any social boycott or misconduct. They also need not have any social inferiority complex in their minds.

“If any person placed under quarantine feels like this (social inferiority complex), the government has arranged counsellors for them. Our counsellors are convincing and assuring such people by reaching out to them.”

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News Network
January 18,2020

Kozhikode, Jan 18: A "fifth-generation dynast" Rahul Gandhi has no chance in Indian politics against a "hard-working and self-made" Narendra Modi, and Kerala did a disastrous thing by electing the the Congress leader to Parliament, historian Ramachandra Guha said here on Friday.

Guha said the reduction of the Congress from a "great party" during the freedom movement to a "pathetic family firm" now is one of the reasons for the ascendency of Hindutva and jingoism in India.

"I have nothing against Rahul Gandhi personally. He is a decent fellow, very well-mannered. But young India does not want a fifth-generation dynast. If you Malyalis make the mistake of re-electing Rahul Gandhi in 2024 too, you are merely handing over an advantage to Narendra Modi," said Guha on the second day of the ongoing Kerala Literature Festival (KLF) during his talk, "Patriotism Vs Jingoism".

Addressing the crowd, full of Keralites, he said, "Kerala, you have done many wonderful things for India, but one of the disastrous thing you did was to elect Rahul Gandhi to Parliament."

"Narendra Modi's great advantage is that he is not Rahul Gandhi. He is self-made. He has run a state for 15 years, he has an administrative experience, he is incredibly hard working and he never takes holidays in Europe. Believe me I am saying all this in all seriousness," he said.

But, even if Rahul Gandhi was "much more intelligent, more hard-working, never took a holiday in Europe, as a fifth generation dynast he still will be at a disadvantage against a self-made person", the 61-year-old author said.

He took on Congress president Sonia Gandhi too who, he said, reminded him of the "late Mughal dynasty" and how aloof they were of the state of their kingdom.

"India is becoming more democratic and less feudal, and the Gandhis just don't realise this. You (Sonia) are in Delhi, your kingdom is shrinking more and more but still your chamchas (sycophants) are telling you that you are still the badshah," he said.

Further, he quoted his teacher and noted Indian sociologist Andre Beteille to describe the story of Nehru-Gandhi family as a classic "reversal of the famous Biblical injunction": the sins of the father will be visited upon seven successive generations.

"In the Nehru's case, it is the sins of the seven successive generations have been re-visited upon Nehru... look at the national debate today. Why is Nehru evoked everytime? Why does Modi always say Nehru ne Kashmir mein yeh kiya, China mein yeh kiya, Triple Talaq mein yeh kiye ... because Rahul Gandhi is there.

"Now if Rahul Gandhi disappears, Modi has to talk about his own policies and why they failed," he said.

According to Guha, "Hypocrisy of the Indian Left -- the fact that they loved other nations more than India", "rise of aggressive nationalism worldwide" and "the rise of Islamic fundamentalism in neighbouring countries" are some other reasons behind the evident leap of Hindutva in India in the recent times.

Historian William Dalrymple, novelists like Benyamin, Namita Gokhale, Chetan Bhagat and journalists Karan Thapar and Rajdeep Sardesai are among the many other writers who will be attending the four-day festival.

The focus theme of KLF 2020 is environment and climate change.

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