'Wealth of billionaires could eliminate poverty in India'

An Oxfam report blamed tax havens abroad as a reason behind rising inequality in India

In the 1990s, India had only two billionaires. Now, the figure stands at 65 and their net worth is enough to eliminate absolute poverty in the country twice over, suggests a report by the Oxfam.

"A significant number of India's billionaires made their fortunes in sectors highly dependent on exclusive government contracts and licenses, such as real estate, construction, mining, telecommunications and the media," the non-profit organisation disclosed in the report Even it Up: Time to End Extreme Inequality, released on Friday.

"At least half of India's billionaire wealth came from such 'rent-thick' sectors of the economy. The net worth of India's billionaires would be enough to eliminate absolute poverty in the country twice over, yet the government continues to underfund social spending for the most vulnerable. As a consequence, inequality in India has worsened," it added.

The organisation said economic inequality is hindering the fight against poverty. The Oxfam said if India could check the rising inequality it could end extreme poverty for 90 million people by 2019. "If it goes further and reduces inequality by 36 per cent, it could virtually eliminate extreme poverty."

It blamed tax havens abroad as another reasons behind rising inequality in India. "More than half of FDI invested in India is channeled through tax havens and most of it from Mauritius. Forty percent - a total of $55 billion - is from just one building in the heart of the capital Port Louis," the report noted.

It said the public private partnerships were not yielding desired results.