A fresh report by the World Inequality Lab, a research group based in Paris, has highlighted a concerning trend in India's economic landscape. According to their findings, economic inequality in India has surged dramatically since the early 2000s. Titled "Income and Wealth Inequality in India, 1922-2023: The Rise of the Billionaire Raj," the report suggests that the current economic divide, led by India's modern elite, surpasses even the disparities seen during the British colonial era.

The report warns of potential social and political unrest if such levels of inequality persist unchecked. Analyzing various data sources including national income records, wealth statistics, tax data, and surveys, the authors, including renowned economist Thomas Piketty, paint a stark picture. In 2022-23, a staggering 22.6 percent of India's national income was claimed by the top 1 percent, marking the highest level of inequality since 1922.

Comparing globally, India's income share among the top 1 percent ranks among the highest, trailing behind only a few other nations. Similarly, wealth concentration among the top 1 percent reached 40.1 percent, also hitting a record high. Notably, wealth within this elite group is extremely concentrated.

However, the report acknowledges that these figures may actually underestimate the true extent of inequality due to data limitations and quality issues in India's economic data collection. Despite calls for measures like imposing a super tax on billionaires and restructuring the tax system, skepticism remains.

Contrary viewpoints exist, with some economists suggesting a decline in inequality based on recent consumption surveys. This divergence underscores the need for a more comprehensive examination and a broader dialogue on the issue of economic inequality in India.

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