New Delhi, India — Narendra Modi came into power in 2014 promising to be an economic reformer who would tackle corruption and uplift the middle class from the grip of the elite. Fast forward to 2024, as Modi vies for a third term, economic researchers are sounding the alarm on the widening wealth gap in India. A recent study by the World Inequality Lab (WIL) reveals that India’s income and wealth inequality have surpassed that of countries like Brazil, South Africa, and the United States. In fact, income inequality in India is now worse than it was under British colonial rule.
The study, co-authored by researchers from prestigious institutions, highlights the stark reality of India’s economic landscape. The top 1 percent now holds over 20 percent of the national income, a figure that has been steadily increasing since Modi took office. Wealth inequality is even more striking, with the top 1 percent controlling over 40 percent of the national wealth.
The middle class, often seen as the backbone of India’s economy, has been hit the hardest. The study shows that the middle 40 percent of Indians have seen their share of national income plummet in recent years. Access to quality education and opportunities for upward mobility remain limited, favoring the wealthy and upper-caste communities.
As India heads to the polls, the widening wealth gap has become a contentious issue. The opposition Congress Party has pledged to address the disparities, while Modi’s campaign has shifted focus to religious polarization. The stark contrast between the crazy-rich and desperately-poor in India paints a sobering picture of the country’s economic reality.