DH ILLUSTRATION
The recent extravagant and over-the-top Ambani wedding, spilling overseas, was more than just a gross display of wealth amidst widespread poverty; it was a stark demonstration of concentrated power — personal, corporate, and political.
The concentration of economic power in India has been rising and is at an all-time high. Some argue this inequality isn't unique to India, noting that countries like China and Brazil also experience similar levels of disparity, suggesting it is a normal aspect of a growing economy — and not a cause for concern.
India’s GDP in 2024 is approximately $4 trillion (₹330 lakh-crore), with a population of 1.4 billion, resulting in a per capita income of about $2,800. However, this figure is misleading when we consider wealth distribution. Ambani and Adani alone have a combined wealth of around $200 billion. The top 10 wealthiest individuals account for about $420 billion, the top 200 individuals for about $1 trillion, the top 1per cent of the population for $1.6 trillion, and the top 5% for $2.5 trillion.
To put this in perspective, excluding Ambani and Adani, India's per capita wealth drops to $2,700. Excluding the top 10 individuals, it falls to $2,500; excluding the top 200, it drops to $2,150; excluding the top 1per cent, it plummets to $1,730; and excluding the top 5per cent, it sinks to about $1,130. This last figure is below the per capita income of most Sub-Saharan African countries.
In contrast, with the top 5per cent population accounting for about 50per cent of GDP, China and Brazil maintain per capita incomes of around $7,000 and $6000 respectively, after excluding their top 5per cent.
This stark poverty among most Indians is the cumulative result of policies and governance by successive governments since Independence, making both the Congress and the Bharatiya Janata Party (BJP) culpable. Early post-Independence years saw experimentation with socialism, but neglect of the SMEs, education, and health in the first decade has had long-lasting impacts. Despite ample time to address these issues, little has been done to bridge the gaps.
Income inequality is also evident in the corporate control of the markets. As of July 26, the total market capitalisation of the 5,309 companies listed on the Bombay Stock Exchange was about ₹450 lakh-crore. The top two companies account for about 8per cent of this total, the top 10 companies for 22per cent, the top 50 for 48.5per cent, and the top 100 for 62.5per cent. This concentration mirrors global trends, but it is no less concerning.
Media concentration is another alarming trend. Much of the media has aligned with a single narrative, and recent changes in telecommunications, broadcasting laws, and the Personal Data Protection Act pose real threats to freedom of expression. Socio-culturally, power is increasingly concentrated in the hands of Hindutva advocates, despite constitutional provisions for secularism. The permission for government employees to join the Rashtriya Swayamsevak Sangh (RSS) gives a disturbing dimension to the concentration of this power.
The convergence of economic, corporate, media, and socio-cultural power creates a fertile ground for centralising political control, posing a significant threat to democracy. The increasing consolidation of political power, particularly in the Prime Minister’s Office (PMO), has been evident in recent years. Enforcement agencies like the ED, and the CBI, among others, appear to be systematically directed towards central control.
The not-so-subtle shifts in the Right to Information (RTI) regulatory environment further illustrate this trend. The refusal to provide information on cheetahs under the guise of ‘national security’ is an absurd use of this power, clearly indicating the direction we are headed.
The requirement to display names of vendors of small businesses is also an attempt at the concentration of power by Hindutva forces. The prolonged standoff between the collegium and the Union government raises concerns about the clouds over the judiciary's independence.
These conditions — over-concentration of power, rising inflation, high unemployment, combined with unchecked corruption — have historically gone hand in hand with extreme nationalism or fascism and anti-democratic pressures. While India may not be there yet, it appears to be headed in that direction unless opposition parties unite and create a coherent narrative.
The results of the 2024 general elections were optimal and reflected the maturity of the Indian electorate. However, with 95per cent of 1.4 billion people earning less than $1,000 a year, rising inflation, growing unemployment, rampant corruption, and unmitigated inequality in wealth, education, and health, the situation represents an anti-democratic time bomb waiting to go off. It is imperative for political leaders, both in the ruling party and Opposition, to recognise the urgency of the situation and address governance issues earnestly.
Addressing inequalities and inequities must become a priority, and this needs to happen faster than in Brazil or China. Brazil’s population is about one-seventh of India’s, and both Brazil and China have about three times India's land area, and their per capita incomes are $11,352 and $13,130 respectively. India can only benchmark itself against its progress, and the urgency to address these challenges cannot be overstated.
To strengthen democracy, India needs to ensure that economic growth benefits the majority and not just a few. The focus must be on equitable policies, robust education, healthcare systems, and opportunities for all citizens. Only then can the country hope to build a resilient democracy that stands the test of time.
We need governance and politics that transcends winning votes and embrace a long-term vision for the nation — an essential perspective for true progress. Our infrastructure should prioritise serving the nation’s commerce and its people as a primary goal, not a collateral fallout. Governance and regulatory systems must genuinely serve the public, rather than rent-seeking rackets for officials and their political patrons. We require effective education and health systems that educate people and keep them healthy, not maintaining a vote bank mired in illiteracy and poverty for narrow political gains. We may already be too late.
(The writer is an academician)