The sky and the stratosphere: concentrated wealth in India during the ‘lost decade’

Recently released official survey data show a decline in wealth inequality (measured by the Gini) and wealth concentration (shares of the top fractiles) over 2012-2018. We investigate a puzzling detail – the rich hold equities, whose prices increased over 2012-2018, while the middle class holds precious metals, whose prices declined over the same period. The survey predicts the richest Indian to be worth Rs 244 million in 2018; according to glossy magazine covers, the richest Indian has, in fact, a net worth of Rs 2,560 billion. We correct this series using data from named rich lists and find that the decline in wealth inequality is more modest. More strikingly, we find a sharp increase in wealth concentration, with the share of the Top 0.001 percent doubling in size – as of 2018, the wealth of the richest 7000 (approx.) Indians exceeds the wealth of the poorest 50 percent.