India's top 10% per cent income earners hold 57 per cent of the total national income while the bottom 50 per cent’s share is just 13 per cent in 2021, making the country poor and very unequal, according to the latest World Inequality Report 2022.
World Inequality Report 2022 | Key Points
1. The report revealed that the majority of the national income in 2021 was generated by the top 10 per cent and top 1 per cent who held 57 per cent and 22 per cent of total national income respectively. The 50% of the lower-income groups were only able to generate 13%. "India stands out as a poor and very unequal country, with an affluent elite,” the report said.
2. It also said that the global income in 2020 also recorded a drop with half of the dip in rich countries and the rest in low-income and emerging regions. And among the low-income area the South and Southeast Asian regions, precisely India had majorly impacted the drop.
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3. “When India is removed from the analysis, it appears that the global bottom 50 per cent income share actually slightly increased in 2020,” it added. The report is authored by economist and co-director of the World Inequality Lab, Lucas Chancel, economists Thomas Piketty, Emmanuel Saez, and Gabriel Zucman.
4. It further discloses that the Indian middle class is relatively poor in comparison to the top 10 per cent and the top 1 percent. The middle class has an average wealth of only Rs 7,23,930 or 29.5 per cent of the total national income. While the top 10 per cent and 1 per cent own 65 per cent (Rs 63,54,070) and 33 per cent (Rs 3,24,49,360), respectively.
5. One in every four people in India was multidimensionally poor, the latest Multi-dimensional Poverty Index (MPI) prepared by Niti Aayog revealed.
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6. “While the top 1 per cent has largely benefited from economic reforms, growth among low and middle-income groups has been relatively slow and poverty persists,” the report added.
