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Capital and the Hindu rate of growth: Top Indian wealth holders 1961-1986

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  • Rishabh Kumar

    (Department of Economics, New School for Social Research)

Abstract

Did India's stagnant growth performance until the 1980s increase or decrease the wealth of the elite? Using estate tax data I compute a series which highlights the relative importance of top wealth holders in India between 1961-1986. I find that a combination of policies and shocks were able to significantly depress the personal wealth of the Top 0.1% over this period. A portfolio decomposition by asset categories for the rich reveals that there was a U shaped trend in the average value of movable assets while wealth invested in land significantly declined. Disparity within top wealth groups also follows a shrinking and swelling, consistent with the intervention of the state in private capital. These results have implications for the equalizing forces inherent in tax policy vis-a-vis the rich and the role of the state in regulating capital in poor nations.

Suggested Citation

  • Rishabh Kumar, 2016. "Capital and the Hindu rate of growth: Top Indian wealth holders 1961-1986," Working Papers 1608, New School for Social Research, Department of Economics.
    • Handle: RePEc:new:wpaper:1608
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    References listed on IDEAS

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    Cited by:

    1. Nitin Kumar Bharti, 2018. "Wealth Inequality, Class and Caste in India, 1961-2012," World Inequality Lab Working Papers hal-02878149, HAL.
    2. Nitin Kumar Bharti, 2018. "Wealth Inequality, Class and Caste in India, 1961-2012," Working Papers hal-02878149, HAL.

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    More about this item

    Keywords

    Wealth; India; Estate Multiplier;
    All these keywords.

    JEL classification:

    • H1 - Public Economics - - Structure and Scope of Government
    • N3 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

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