The rich are getting richer in India while the poor are getting poorer.
Over the last four decades, India’s top 1% earners’ share of the country’s income rose from roughly 7% to 22%, as of 2014. Meanwhile, the income share of the bottom 50% earners declined from roughly 23% in the early 1980s to 15% in 2014.
That’s according to 2018 World Inequality Report, which compiles data from the 1950s to 2014.
Most notably, India’s rising income inequality stands out among other global emerging markets, including neighboring China.
The 2018 Inequality Report’s findings portray a different image of India’s economy from the one portrayed by the country’s financial markets, which have been soaring, up close to 53% in the last two years.
|Global X MSCI Pakistan (PAK)||3.69%|
|iShares S&P India 50 (INDY)||53.16%|
Source: Finance.yahoo.com 2/16/18
Apparently, globalization and government deregulation policies of the last four decades have benefited the rich, but have yet to touch the poor.
Still, India’s reformers shouldn’t get the entire blame for this situation — including Prime Minister Narendra Modi, who assumed office after the period covered in this study. Part of the blame should go to India’s socialists, who ruled the country before the 1980s.