Indian Growth Situations

Income inequality in India is getting worse.

 

A country of poor people but, not for poor people

At the event of ongoing World Economic Forum, a report was released by Oxfam. The report underlined the increasing wealth disparity in India in couple of years. Reportedly, the 1% of total population owned 73% of total wealth in 2017. However, the figure was 58% in 2016. By and large, the increasing ratio is much higher than expected and this is prodigious situation.

Meanwhile, experts analyzed the situation as worse than before. Indian tax reforms were brought in by British authoritative rule in 1922. As can be seen, the inequality has raised surpassing the situations from any of the year passed. Additionally, economists have confirmed the rapid growth of economic diversification between the countrymen. Henceforth, the approximate calculations have to be noted seriously. Meanwhile, if someone is going to object the estimations, than the direction and rapidity of income equality would still be a concerned aspect to deal with.

 

Top 10 Indians are having 73% of total wealth.

To demonstrate, the liberal mode of ideological economic system in this country has seems failed. The poor who are working hard for the owners, living in poor conditions but building infrastructure as struggling for the education of their children to get going. As can be seen, Indians are struggling for a meal a day. Consequently, these conditions are going to urge on more corruption and patronage resulting in weakening and discouraging democracy. Explicitly, according to the reports, it will take approximately 900 years for a low income worker in India to earn what the top executives and owner in leading firms are earning in a year.

There are extreme level steps that government has to conduct including to promote inclusive growth by encouraging labor sectors, high tax ration on super-rich personalities, tackle gender discrimination and reforms against tax dodging. The estimated tax evasion is $200 billion. Most importantly, the fact is developing countries are losing about $170 billion in tax dodging every year.

By and large, the solution of this massive drawback is lying in Indian hands. Growth diversity can be eradicated through limiting the share of shareholders which are getting ten times to the salary of an average worker who works day after day for the firm. The companies should encourage limiting the pay ration to owners and executives as well.