India's great economic inequality: The poor see their income halve while number of billionaires double

India faces an economic divide that is getting wide at an unprecedented rate. A latest survey by a Mumbai think-tank throws up shocking data - for the first time since liberalisation of the economy the poorest section of the society got poorer.

In the latest round of ICE360 Survey 2021,the annual income of the poorest 20% of Indian households, constantly rising since 1995, plunged 53% in the pandemic year 2020-21 from their levels in 2015-16. And one can't brush this aside with a claim that the pandemic hurt everyone, as India’s billionaires have seen their combined fortunes more than double during the pandemic and the number of Indian billionaires shot up by almost 40% since 2020.

The survey conducted by People’s Research on India’s Consumer Economy (PRICE), covered over 2.4 lakh households in 120 towns and 800 villages across 100 districts.

The survey shows that even when the countries disposable income went up by over 8% vs 2015 the poorest section saw their income drop by 53%. Even the lower middle (which is the next 20% strata) saw their income plunge by over 30% as well all this while the rich (the top 20%) saw their wealth rise by nearly 40%.

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Nearly 5 core Indians slid into poverty during the pandemic, while the number of billionaires in the country multiplied and many inequality reports have been highlighting India's great divide while the subcontinent celebrates one of the fastest growth trends around the world.

Paris-based World Inequality Lab stated that as per their latest data India is now among the most unequal countries in the world. In fact a report published as the world leaders and elite gathered virtually by WEF read that During 2021, the second year of the pandemic, 84% of Indian households saw their income decline while the number of billionaires in India grew from 102 to 142.

Global experts state that India is now one of the most unequal countries for both income and wealth inequality By 2020, the income share of the bottom half of the Indian population was estimated to have fallen to only 13%, while the top 10% captured 57% of national income and the top 1% alone got 22%.

So the big question that haunts the world's fastest growing economy. As the poor get poorer and only the affluent getting richer is the economy really growing?