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India's wealth gap widened during pandemic: Oxfam report

Report says concentration of wealth is beyond comprehension and economic inequalities are out of control
India's wealth gap widened during pandemic: Oxfam report

A daily wage worker carries a basket filled with fruits in Mumbai on Feb. 1. (Photo: Punit Paranjpe/AFP)

Published: February 01, 2021 07:45 AM GMT
Updated: February 01, 2021 08:31 AM GMT

The wealthy in India grew richer during the Covid-19 pandemic crisis, while millions went to bed without food, says the latest Oxfam International report.

The annual report, published just ahead of last week's World Economic Forum in Davos, noted that Indian billionaires increased their wealth by 35 percent in 2020 when the world struggled against the pandemic.

During 2020 wealth increased globally to make. the world's billionaire elite richer, said Oxfam, a confederation of 20 independent charitable organizations based in Oxford, England.

The agency working to alleviate global poverty compiled its report, "The Virus of Inequality," using data published by Forbes magazine and Credit Suisse Bank, supplemented by the analyses of 295 economists from 79 countries.

The report raises the alarm on the latest trends in wealth distribution in the world.

According to Oxfam, 2,153 billionaires hold more money than 60 percent of the world's population. By December 2020, their total wealth reached US$11,950 billion, the equivalent of the amount spent by the G20 countries to deal with the pandemic's economic impact.

The 10 wealthiest have gained $540 billion since March 18, 2020, while several hundred million people have been thrown into job insecurity.

The concentration of wealth in India is "beyond comprehension" and its economic inequalities "are out of control," said the report.

At least 84 percent of Indian households saw their income drop during the health crisis.

In India, the report noted that the gap is widening sharply. "Inequalities declined after independence but have recently returned to levels not seen since colonial times."

India's billionaires saw their wealth increase by 35 percent during the lockdown period, while hunger loomed large in the country. Nearly 84 percent of Indian households saw their incomes fall during this period.

According to Oxfam's calculations, the enrichment of Indian billionaires would have been enough to pay nearly €1,300 to each of India's 138 million poorest people.

At the forefront of those who profited from this crisis is Mukesh Ambani, the richest man in the country, who runs the Reliance Industries conglomerate inherited from his father.

He is known for building one of the world's most expensive private residences, erecting a spectacular tower in the heart of Mumbai.

"Between March and October 2020, his wealth more than doubled to $78.3 billion, and he rose from 21st to sixth in the world's largest fortunes," notes the Oxfam report.

"During this period, Mr. Ambani's average enrichment over just over four days was more than the combined annual salaries of the entire Reliance Industries workforce of 195,000 employees."

Oxfam also highlights the different forms of inequality created by India's health crisis, as in many countries worldwide.

Compared with the rest of the population, the most vulnerable Indians have been disadvantaged in health, education and gender. Historically oppressed communities have been the most targeted by this discrimination.

"Economic inequalities are reinforced by the caste system, social inequalities, women's position in society and religious discrimination," said Amitabh Behar, head of Oxfam in India.

For example, unemployment has affected women more than men. In health, compliance with health rules to curb the virus's spread is only possible among the better-off. Half of the population has access to basic health care and pays most health costs out of their own pockets.

"India has the fourth-lowest health budget in the world as a proportion of government spending," the report says. “The government must give itself the means for real change".

Without social protection, 40 million internal migrants found themselves on the streets after the government imposed the Covid-19 lockdown, which saw millions of people fleeing on foot from the big cities to their villages' informal safety.

There is a fear of elevated school dropout rates due to schools' prolonged closure during the lockdown. Those most concerned would be girls, Dalits (formerly "untouchables"), aborigines and the Muslim minority.

Faced with these economic disparities in a period of a health crisis, a temporary tax on the surplus profits of India's 954 wealthy people would be able to represent 1 percent of GDP, according to Oxfam, which calls for political responsibility.

"The government now needs to make real change by ensuring that the very rich and corporations pay their share of taxes and that this money is invested in the public health and education system.

"The government must build a better future for all, not just a privileged few," the report said.

This is an adapted version of an article that appeared in Eglises d'Asie (Churches in Asia), a publication of the Paris-based Missions Etrangères de Paris (MEP) or Paris Foreign Missions Society.

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