Globally, financial institutions are now clearly assuming that India’s economic strength is increasing very fast in the world. In a recently released survey report, it has been reported that in the last year, India has recorded incomparable increase in the number of high net worth individuals in the last year. Whereas in many countries of the world, especially in developed countries, the number of high net worth individuals and their property is continuously falling down. Its requirement can now be imposed, economic power in the world is now moving from west to east.
A person whose net property is 5 crore or more in India is called a high net worth person (HNWI). Last year, the average property of high net worth individuals in India has increased at a rate of 8.8 percent, while in the world it has increased at a average rate of 2.6 percent. As a result of this, the number of millions in India has increased to 378,810 and their total assets have crossed US $ 1.5 lakh crore ie 129 lakh crore rupees. In the year 2024, 4,290 Ultra High Networth Person was residing in India, with total assets of US $ 53,477 crore. Ultra high net worth individuals are a citizen whose net property is 3 million US dollars or more.
Also read: The goal of removing economic inequality with poverty
The number of high net worth individuals in India has increased but their number in Europe has decreased by 2.1 percent. The number of 14,000 in the UK, 21,000 in France, 41,000 high net worth individuals in Germany have decreased. The number of high net worth individuals in the Asia Pacific region has increased by 1.7 percent, while the number of high net worth individuals in Latin America declined by 8.5 percent. Also, in the Middle East, there has been a decrease of 2.1 percent in the number of high net worth individuals.
Is there a crisis of deepening economic inequality in India due to the increasing number of high net worth individuals in India and their increasing property. However, the increasing property of high net worth individuals in India is also a symbol of India’s growing economic strength. But, if all the citizens of the society are not getting the benefit of this increased property, then it is a matter of mind.
In this context, according to a report recently released by the World Bank, India has been incomparablely reduced in the number of citizens living in excessive poverty. This can definitely be very good news for India. According to this report, the number of citizens living in excessive poverty in India has come down from 34.44 crore citizens to 7.52 crore citizens. About 27 crore citizens in India have been brought above excessive poverty. According to the said report of the World Bank, in the year 2011-12, 27.1 percent of India’s total population was forced to live in extreme poverty, but by the year 2022-23, this number has come down to only 5.3 percent, while, in the meantime, India’s population has also increased. This has been possible due to fast developed employment opportunities in India. In this context, due to extending the benefits of various schemes implemented by the Central Government to the maximum population of the country, there has been immense success in reducing multidimensional poverty in India. Multidimensional Poverty Index (MPI) has come down from 53.8 percent in the year 2005-06 to 15.5 percent in the year 2022-23. Even in the coming years, if similar economic growth rate is applicable in India, then it is very possible that after a few years, there will probably remain a single citizen living below the poverty line in India.
The said report of the World Bank also states that there has been almost the same success in reducing poverty in urban and rural areas in India. The result of this is that the excessive poverty rate in rural areas of India has come down from 18.4 percent to 2.8 percent today. Similarly, in urban areas too much poverty rate which was close to 10.7 percent has come down to just 1.1. A similar difference has been overcome in the economic behavior of rural-urban-urban life, this difference has come down from 7.7 percent to just 1.7 percent. Especially the incomparable growth rate in employment opportunities among women has been achieved. In rural areas, there has been an increase in employment opportunities for women in agriculture. In the first quarter of FY 2024-25, the unemployment rate of urban areas has come down by 6.6 percent, the lowest since 2017-18.
The central and state governments have worked together to remove poverty in India. Many schemes have been implemented in this regard, especially by the Central Government. These important and special schemes include – Pradhan Mantri Awas Yojana, Pradhan Mantri Suraksha Bima Yojana, Pradhan Mantri Jan Dhan Yojana, Pradhan Mantri Jeevan Jyoti Yojana, Pradhan Mantri Ujjwala Yojana, Pradhan Mantri Ayushman Bharat Yojana, Pradhan Mantri Kisan Samman Nidhi Yojana, Pradhan Mantri Garib Ann Kalyan Yojana, many schemes like Pradhan Mantri Kisan Samman Nidhi Yojana, Pradhan Mantri Garib Ann Kalyan Yojana have benefited a lot to citizens living below the poverty line in the country, so that they have been brought over the poverty line. Similarly, the Swachh Bharat Mission, Water Life Mission, Digital Revolution, Make in India, Jan Aushadhi Kendra, purchased various crops at MSP and guarantee income to farmers through it, formation of Makhana Board, Empowerment of Tribes – Village Prosperity, Mission for Self -Prevention in Pulses, Mission for self -reliance, Prime Minister Dhan Dhanya Agricultural Scheme, Rural Electricity Supplies Scheme, Rural Electricity Supplies Providing Rural Electricity Supplies, Use of Flight 2 to Farmers’ Electricity Supplies Scheme, Flight 2 to farmers Fasting), The incomparable works done through the above mentioned schemes implemented in the field of new era in the field of aviation, etc. have been successful in creating crores of new employment opportunities in the country.
In implementing various schemes described, the Central Government has never allowed the lack of finance to come down because due to honesty and financial discipline in the recovery of taxes, there has been a high level of increase in GST, Income Tax and Corporate Taxes. Not only has the availability of adequate finance to implement various schemes described, but also an incomparable increase in capital expenses has been registered. Also, the budget has been successful in continuously reducing the financial deficit in the budget. Moreover, the functioning of various central government undertakings has been improved in such a way that the undertakings which were running in losses till the last few years ago and the central government had to provide financial assistance every year to keep these undertakings moving, today these undertakings are proving to be earning for the central government. In the financial year 2024-25, various central government undertakings have earned a profit of more than Rs 5 lakh crore. Due to all these reasons, the Central Government and various state governments have not faced any kind of trouble in keeping various schemes implemented for the good of common citizens and due to which there has been immense success in improving the standard of living of crores of citizens living below the poverty line.
– Prahlada Sabnani
Retired Deputy General Manager,
state Bank of India
K-8, Chetakpuri Colony,
Jhansi Road, Lashkar,
Gwalior – 474 009