Indian billionaires: The rise of the few sparks concern about equality

The super-rich increasingly hold more of the national income; their wealth has grown by 263% to $905.6 bn in a decade

India has 185 billionaires, the third largest such cohort in the world after the United States (US) and China, according to a report released this week.

 

Between 2015 and 2024, the wealth of the world’s billionaires increased by 121 per cent – from $6.3 trillion to roughly $14 trillion, according to the ‘Billionaire Ambitions Report 2024’ released by Union Bank of Switzerland.

 

The number of billionaires worldwide also increased by 52.64 per cent, from 1,757 to 2,682, in this period. Billionaires in the technology and industrial sectors increased their wealth three-fold and 2.5 times, while those in the real estate sector suffered a jolt after Covid-19.

 

The number of Indian billionaires has grown by 123 per cent in the 10-year period, reaching 185 in 2024. Their wealth has grown by 263 per cent to $905.6 billion. The report cites the proliferation of family-led businesses and conglomerates in India as a major reason for the rise in billionaire numbers. As many as 55.7 per cent of India's billionaires in 2024 were self-made.

 

Except China, the number of billionaires and their wealth in the top 10 economies of the world have gone up from 2022 to 2024. The report highlights China's higher churn rate in recent years, meaning a large number of individuals move in and out of the billionaire list. The US tops the list, having 835 billionaires in 2024.  

 

As the number of Indian billionaires increases, income and wealth inequality in the country are widening. The share of the top 1 per cent individuals in India’s national income has increased from 15.5 per cent in 2000 to 23.07 per cent in 2023. The share of the bottom 50 per cent has dropped down to 13.25 per cent in 2023 from 18.54 per cent in 2000, according to the World Inequality Database.

 

The top 1 per cent individuals held an unprecedented high of 33.1 per cent of total personal wealth in the country in 2022, while the bottom 50 per cent were clutching at straws and held 5.94 per cent. (chart 2) 

 

Even within the world’s super-rich, there is telling evidence of wealth concentration. The wealth of the top 100 billionaires among all billionaires increased from 32.3 per cent in 2015 to almost 36 per cent in 2024. The increase was pronounced after the pandemic year of 2020. (chart 3) 

 

According to some rising inequality levels in India paint a grim picture of the existing duality in the country.