To,

Smt. Nirmala Sitharaman,

Honorable Finance Minister,

Government of India, New Delhi

Subject :- Why in India the poor is getting poorer and the rich is getting richer?

Dear Madam,

     We the citizens of India are proud of Mr. Mukesh Ambani, Chairman, Reliance Industries Ltd. who has been reached at 5th position in a list of World's Richest personalities. Now it's a perfect time for him and his entire family to pay back what they have achieved in respect of wealth, prestige, Honor, prosperity and happiness from our nation's resources, support, Government benefits back to our Great nation - India. Indian citizens request Mr.Mukesh Ambani and his family to start their philanthropic activities just as TATAs are doing from the establishment of their empire in India and take responsibilitiea to run all our Government Hospitals by making agreement with Government of India to run and manage it with latest Medical facilities Free of charge for poor and with an affordable charges for lower / upper middle class citizens of India. 

   It’s not India alone. Income inequality has been on the rise across the world, but the situation is particularly startling in regions such as the Middle East and in countries such as Brazil and India.

        Since the time of freedom, India never achieved equality in economy between classes. At Indian constitution, the word ‘socialism’ was used, but it's an open secret that the mixed economy of India is leading to a Capitalist economy now.

       The charts shows the share of national wealth controlled by the top 10% of the population, while it illustrates the pace at which the wealth of this 10% of the population has been rising in proportion to the national income, furthering the wealth divide.

    Richest1% Cornered 73% of Wealth Generated in India: Oxfam Survey - the top 1 percent of the population owned 73 percent of the addition to wealth that occurred. The top 1 percent owned 58 percent of the stock of wealth. Thus its share, already phenomenal, is still increasing.

Causes of Inequality of Income/Saving in India:

1. Inequality in the ownership of assets-

      One example, when leaving for the city, labour migrants would abandon their houses or their land or be forced to sell them at low prices. What is more, sometimes their assets are simply expropriated to facilitate industrial or "infrastructure" projects (roads, dams, factories, etc.) which invariably have a real estate component to them. This contributes directly to greater concentration of wealth.

2. Privatisation of essential services like education and healthcare makes them effectively more expensive for the lower income groups which reduces their savings.

3. Cost of Higher education.

     Higher education helps people to gain expertise that can move their position towards upper income group . Higher cost of education leads lower income classes to send there child for getting expertise in his/her domain

4. Improper Tax system - Handing out tax concessions and tax rebates to big corporations for ushering in "faster growth".

5. Tax evasion - This has been a kind of trend for rich and government employees. That leads to concentration of money at one place.

6. Corruption - 

    Corruption is an attitude of life. It is a particular mental frame. A perverted mental frame. Corruption has a very strong presence in our social life. Every case of helplessness is a result of a corrupt act on the part of somebody else. And the voiceless people. They hardly count.
Corruption is very deep-rooted. In our society, a corrupt man is unfortunately offered a successful life.
The law is called Prevention of Corruption Act. But it is apt to say Preservation of Corruption Act. There is a very important provision in this Act. Unless there is a sanction you cannot proceed against the corrupt official. Who is to give this sanction to prosecute? It is said that if this protection is not given, the courts will be flooded with frivolous cases of corruption. So we are not being sincere on eliminating corruption.

7. Greater Burden of indirect taxation or regressive tax structure.

8. Inflation - Partnership of Unemployment and Inflation is perilous. One reduce capability of common man to buy anything and other takes away even that meagre chances.

 

Expert view on this.

N. C. Saxena, a member of the National Advisory Council, suggested that the widening income disparity can be accounted for by India’s badly shaped agricultural and rural safety nets. “Unfortunately, agriculture is in a state of collapse. Per capita food production is going down. Rural infrastructure such as power, road transport facilities are in a poor state,” he said. “All the safety net programmes are not working at all, with rural job scheme and public distribution system performing far below their potential. This has added to the suffering of rural India while market forces are acting in favour of urban India, which is why it is progressing at a faster rate”.

      I request Shri Narendra Modi lead Government of India through Finance Minister Smt. Nirmala Sitharaman to kindly go through the true facts of prevailing serious kind of inequality in our nation where Rich is getting more richer and poor is getting more poor, scrutinize it to through sincere efforts and take immediate necessary actions for the welfare of poor and middle class income group citizens of India by imposing higher rates of Taxes on Richest 1% citizens who have cornered 73% of Wealth in India.

   Regards

 

Rayoman S. Ilavia

Surat. Gujarat. India.