The Ambani wedding. Apologies for bringing it up again; bear with me just this one last time. I must say, if I were in Anant's costly shoes, I would have been slightly disappointed that papa only spent 0.5 % of his net worth on my wedding. Weddings usually make up about 5 to 15 % of the commoner's expenditure. A cheap wedding indeed. What shone brighter than the star-studded guest list was the tremendous opulence and wealth of the Ambani family
The wedding was all over, from newspapers to social media platforms, college lectures to app notifications. It was impossible to ignore. Something that in fact was ignored- even when it was staring at us right on our faces- was India’s growing wealth gap. News outlets and media houses were scrambling to find out the latest tea on why Ranveer Singh was flirting with other women. Surely, wealth inequality can’t be more important.
The growing prosperity of India's elite on one hand and the struggles of the average Indian on another is all the more highlighted by recent changes in the economy. The Indian stock market is in bloom. We have 200 Indians featured on Forbes' 2024 list of the world's billionaires. Their combined wealth amounts to $954 billion (a record total), marking a 41% increase from the previous year. In many wealthy countries, including the UK, significant wealth concentrations often stem from inheritance, property rents, financial speculation, and political influence that minimizes tax liabilities. Similar dynamics are at play in India, where the wealthy benefit from the systems while the majority struggle to access basic resources.
As of 2023, India's top 1% of income earners held 22.6% of the national income, while their share of the nation's wealth had surged to 40.1%. These figures place India among the highest in global inequality rankings. This extreme concentration of wealth, highlighting economic disparity, raises questions about the effectiveness of current wealth distribution policies. Multiple proposals have been made towards the cause of fair distribution of economic resources. One such proposal that fascinated me is that of a "super tax" on the ultra-wealthy.A super tax of 2% on the net wealth of the 167 wealthiest families in India would yield around 0.5% of the national income as revenue. This revenue could provide much-needed fiscal space for investments in public services like health and education, resulting in a more balanced development. Such a reallocation would aid in ensuring that the benefits of India's economic growth are reaped not just by the elite.
A recent survey revealed that 68% of people worldwide believe the super rich should be taxed more by the government. In India, this figure is higher, with around 74% of the population supporting the cause. This broad consensus reflects growing frustration with the current system and the need for more equitable policies. Super tax is just one amongst many policies that could aid in equitable distribution of wealth. The cry for new policies curated for greater social equality has never been louder. If we are to address income inequality, policy adjustments and the adoption of more inclusive economic practices must go hand in hand.
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