Wealth of 9 richest Indians equivalent to bottom 50% of country: Oxfam
'India's richest 1% get richer by 39 pc in 2018; just 3 pc rise for bottom-half'
Davos, Jan 21 : Indian billionaires saw their fortunes swell by Rs 2,200 crore a day last year, with the top 1 per cent of the country's richest getting richer by 39 per cent as against just 3 per cent increase in wealth for the bottom-half of the population, an Oxfam study said Monday.
Globally, billionaires' fortunes rose by 12 per cent or USD 2.5 billion a day in 2018, whereas the poorest half of the world's population saw their wealth decline by 11 per cent, the international rights group said in its annual study released before the start of the five-day World Economic Forum (WEF) Annual Meeting in this Swiss ski resort town.
Oxfam further said that 13.6 crore Indians, who make up the poorest 10 per cent of the country, continued to remain in debt since 2004.
Asking the political and business leaders who have gathered in Davos for the annual jamboree of the rich and powerful of the world to take urgent steps to tackle the growing rich-poor divide, Oxfam said this increasing inequality is undermining the fight against poverty, damaging economies and fuelling public anger across the globe.
Oxfam International Executive Director Winnie Byanyima, one of the key participants at the WEF summit, said it is "morally outrageous" that a few wealthy individuals are amassing a growing share of India's wealth, while the poor are struggling to eat their next meal or pay for their child's medicines.
"If this obscene inequality between the top 1 percent and the rest of India continues then it will lead to a complete collapse of the social and democratic structure of this country," she added.
Noting that wealth is becoming even more concentrated, Oxfam said 26 people now own the same as the 3.8 billion people who make up the poorest half of humanity, down from 44 people last year.
The world's richest man Jeff Bezos, founder of Amazon, saw his fortune increase to USD 112 billion and just 1 per cent of his fortune is equivalent to the whole health budget for Ethiopia, a country of 115 million people.
"India's top 10 per cent of the population holds 77.4 per cent of the total national wealth. The contrast is even sharper for the top 1 per cent that holds 51.53 per cent of the national wealth.
"The bottom 60 per cent, the majority of the population, own merely 4.8 per cent of the national wealth. Wealth of top 9 billionaires is equivalent to the wealth of the bottom 50 per cent of the population," Oxfam said while noting that high level of wealth disparity subverts democracy.
Between 2018 and 2022, India is estimated to produce 70 new dollar millionaires every day, Oxfam said.
"It (the survey) reveals how governments are exacerbating inequality by underfunding public services, such as healthcare and education, on the one hand, while under taxing corporations and the wealthy, and failing to clamp down on tax dodging on the other," Oxfam India CEO Amitabh Behar said.
The survey also shows that women and girls are hardest hit by rising economic inequality, he added.
"The size of one's bank account should not dictate how many years your children spend in school, or how long you live - yet this is the reality in too many countries across the globe. While corporations and the super-rich enjoy low tax bills, millions of girls are denied a decent education and women are dying for lack of maternity care," Byanyima said.
According to the Oxfam report, India added 18 new billionaires last year, raising the total number of billionaires to 119, while their wealth crossed the USD 400 billion (Rs 28 lakh crore) mark for the first time.
It rose from USD 325.5 billion in 2017 to USD 440.1 billion in 2018, making it the single largest annual increase since the 2008 global financial crisis.
Oxfam further said getting India's richest 1 per cent pay just 0.5 per cent extra tax on their wealth could raise enough money enough to increase the government spending on health by 50 per cent.
It said the combined revenue and capital expenditure of the Centre and states for medical, public health, sanitation and water supply is Rs 2,08,166 crore, which is less than the country' richest man Mukesh Ambani's wealth of Rs 2.8 lakh crore.
Globally, Oxfam said the tax rates for wealthy individuals and corporations have been cut dramatically.
While billionaire wealth soars, public services are suffering from chronic underfunding or being outsourced to private companies that exclude the poorest people, Oxfam said.
The rights group said in many countries including India, a decent education or quality healthcare has become a luxury only the rich can afford.
"Children from poor families in India are three times more likely to die before their first birthday than children from rich families," it added.
Oxfam said its calculations are based on the latest comprehensive data sources available publicly, including from the Credit Suisse Wealth Databook and the annual Forbes Billionaires List.
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Dangerous explosives found outside Kerala school
Palakkad (PTI): Explosives found outside a school compound in Vadakanthara in this district on Wednesday were confirmed to be of a dangerous nature, according to the First Information Report (FIR).
The explosives were found on Wednesday evening when a student threw one of the devices--which are suspected to be used for eliminating wild boar--resulting in an explosion, causing minor injuries to both himself and an elderly woman nearby, police said.
The FIR states that Narayanan, a 10-year-old student, discovered the explosives near the gate of the Vyasa Vidhya Peedom pre-primary school compound in Vadakanthara at around 3.45 pm.
Excited over the discovery, he threw one of the explosives to the ground, which then exploded with a loud sound, injuring himself and 84-year-old Leela, who was standing nearby.
School authorities and residents rushed to the scene and called the police who searched the place and found four more explosives in a bucket.
The injured were taken to the hospital, and their condition is stable, said police sources.
Palakkad North police have registered a case under section 3(a) (causing an explosion that is likely to endanger life), section 4(a) (keeping explosives with an intention to endanger life and property) of the Explosive Substance Act, and section 75 of the Juvenile Justice (Care and Protection of Children) Act that deals with cruelty to children.
The FIR of the case stated that explosives were of a dangerous nature and were kept at the place to endanger human life.
A team led by a DySP-ranked officer is investigating the case.
According to police, CCTV cameras in the area have been recovered as part of the investigation, and attempts are being made to identify people who kept explosives near the school compound.
BJP district leaders alleged a major conspiracy behind the incident and demanded a thorough probe.
CPI(M) leaders alleged that the school management is affiliated with RSS, and there is training given to volunteers in the area.
Congress has also called for a detailed probe into the incident.
