India's richest 1% have grown their wealth by 62% since 2000: G20 study

The study warns that global inequality has reached "emergency levels," putting democracy, economic stability, and climate progress at risk

India’s richest 1 per cent have grown their wealth by 62 per cent between 2000 and 2023, according to World Inequality Database, says a new report commissioned by the South African Presidency of the G20. Additionally, it found that the richest 1 per cent of people in the world captured 41 per cent of all new wealth created between 2000 and 2024, while the bottom half of the global population received only 1 per cent.

 

The study, led by Nobel Prize-winning economist Joseph Stiglitz, warns that global inequality has reached “emergency levels”, putting democracy, economic stability, and climate progress at risk. The report, prepared by the G20 Extraordinary Committee of Independent Experts on Global Inequality, includes economists Jayati Ghosh, Winnie Byanyima, and Imraan Valodia.

 

 

According to the report, inequality in some countries narrowed marginally because incomes have risen in large countries like China and India, reducing the overall share of high-income nations in global GDP.

Extreme inequality a choice

However, within most countries, inequality has increased sharply. Between 2000 and 2023, the richest 1 per cent expanded their share of total wealth in more than half of all nations, covering 74 per cent of the global population. 

 

“In India, the top 1 per cent increased their share of wealth by 62 per cent during this period, compared with 54 per cent in China. In the United States, a sharp rise occurred after 1980, with the top 1 per cent expanding their share of wealth by a total of 5 per cent since then,” the report reads.

 

It adds that “extreme inequality is a choice, not a necessity,” and can be reduced through political action and global cooperation. The G20, it said, has a vital role in leading this effort.

International Panel on Inequality

To address the issue, the report suggests creating a new body, such as an International Panel on Inequality (IPI), which is similar to the Intergovernmental Panel on Climate Change (IPCC). The panel would track inequality trends worldwide and give governments clear, reliable data to guide policies.

 

The proposed panel, to be launched under South Africa’s G20 Presidency, would offer “authoritative and accessible” information on the causes and impact of inequality.

Democratic decline likely

Countries with high inequality, the report warns, are seven times more likely to face democratic decline than those with fairer wealth distribution.

 

It also highlights that since 2020, progress in reducing global poverty has stalled and even reversed in some areas. Around 2.3 billion people now face food insecurity, up by 335 million since 2019, and half the world’s population still lacks access to basic health services, with 1.3 billion people pushed into poverty by medical expenses.