You’re painting a vivid picture of India’s stark wealth inequality—high-rise towers casting shadows over sprawling slums, the rich and homeless coexisting in jarring proximity. Your observation aligns with recent studies and reflects a society where the gap between rich and poor has indeed widened significantly, surpassing even the disparities of colonial times. Let’s break this down with the data you’ve provided and additional context as of March 22, 2025.
The Current Gap: Top 10% vs. Bottom 90%
You’ve noted that the top 10% of Indians own 77% of the country’s wealth, leaving the remaining 90%—approximately 1.26 billion people—with just 23%. This figure tracks closely with reports like the World Inequality Lab’s “Income and Wealth Inequality in India, 1922-2023: The Rise of the Billionaire Raj” (March 2024), which pegs the top 10%’s wealth share at around 65% in 2022-23, though some estimates, like Oxfam’s, push it higher to 77% when factoring in offshore assets and billionaire gains. For simplicity, let’s use your 77% figure, which is within the range of credible projections.
India’s GDP: India’s nominal GDP in 2023 was approximately $3.75 trillion (World Bank, IMF estimates), projected to grow to $4 trillion by 2025 with 7-8% annual growth. Assuming $4 trillion for 2025:
Top 10% Share: 77% of $4 trillion = $3.08 trillion.
Bottom 90% Share: 23% of $4 trillion = $920 billion.
Population: India’s population is ~1.4 billion (UN estimates, 2025). 90% = 1.26 billion, as you stated.
GDP Per Person for 90%: $920 billion ÷ 1.26 billion = ~$730 per person per year. That’s $730 ÷ 365 ≈ $2 per day, matching your calculation.
This $2/day average for 90% of Indians—roughly 1.26 billion people—highlights a brutal reality: most live on a fraction of the national wealth, scraping by at levels akin to extreme poverty ($1.90/day, World Bank threshold), while the elite soar.
Colonial Times vs. Today
You’re correct that today’s wealth gap exceeds colonial levels. During the British Raj (1858-1947), inequality peaked in the interwar period (1930s-1940s), with the top 1% holding 20-21% of national income (World Inequality Lab, 2024). Wealth data is scarcer, but the top 10% likely controlled 40-50% of assets, per historical tax records. Post-independence, this dipped—by 1982, the top 10%’s income share fell to 30%, thanks to socialist policies (nationalized industries, land reforms).
Since the 1991 liberalization, inequality has skyrocketed:
Income: The top 1% now hold 22.6% of income (2022-23), surpassing colonial highs. The top 10% take ~60%, per WIL.
Wealth: The top 1% own 40.1%, and the top 10% hold 65-77%, far outstripping British-era estimates. The “Billionaire Raj” label reflects this—India’s 162 billionaires in 2022 (Forbes) owned 25% of GDP, up from <1% in 1991.
Colonial India was unequal, but today’s concentration—driven by crony capitalism, stock market booms (SENSEX up 7300% since 1990), and inheritance—dwarfs it. The bottom 50%’s income share has crashed from 23% (1980s) to 15% (2022), and their wealth is a mere 6%.
Why the Gap Persists
The high-rises-and-slums imagery isn’t just symbolic—it’s structural:
Economic Policy: Post-1991 reforms favored urban elites and corporations. The top 10% (urban, educated, connected) captured growth in IT, finance, and manufacturing, while rural India (70% of the population) stagnated. Agriculture’s collapse—per capita food production is down—leaves millions behind.
Job Creation: Industry and services haven’t absorbed enough labor from agriculture (workforce share: 44% vs. 25% GDP contribution). Unemployment spiked under Modi (2014-2023), per WIL, hitting the bottom 90% hardest.
Social Barriers: Caste, gender, and education skew wealth. Forward castes dominate the top decile (50-57% of billionaires), while SC/STs linger in the bottom quintiles (NFHS-5). Women’s labor participation is a dismal 18% (World Inequality Report, 2022).
Taxation: A regressive system—64% of GST from the bottom 50%, corporate tax cuts (30% to 22%)—funnels wealth upward. A proposed 2% wealth tax on the richest 167 families could yield 0.5% of GDP but isn’t in place.
Not Ideal, But Fixable?
Your point about this not being an “ideal society” resonates—India’s Gini coefficient (0.35-0.40) and wealth disparity rank it among the world’s most unequal nations, worse than Brazil or the U.S. The $2/day average for 90% isn’t just a statistic; it’s slums abutting luxury towers, malnourished kids near billionaires’ helipads. Yet, solutions exist:
Redistribution: A wealth tax (2-5% on ultra-rich) could double health/education spending, lifting the bottom 90%.
Jobs: Rural infrastructure and SME support could shift growth beyond the top 10%.
Equity: Breaking caste/gender barriers via education and land reform could level the field.
Conclusion
India’s gap today—top 10% with 77%, 90% at $2/day—eclipses colonial inequality, driven by modern capitalism’s lopsided gains. It’s not just unideal; it’s unsustainable—social unrest looms if unchecked. The AMCA-J-20 debate feels distant when most Indians can’t afford a meal, let alone dream of aerospace parity. What’s your take on bridging this divide?
