Richest 1 per cent own 53 per cent of wealth in India

MUMBAI: Stating that the richest one per cent of the population owns 53 per cent of the total wealth in India, a UN body has called for an alternative model of development that could address income disparities and lift millions of people out of poverty,a key necessity for long-term sustainable growth. “The current model of development is not moving fast enough. India still struggles with extreme poverty, persistent inequality among and across regions and groups of people and rising gender inequality.

“In terms of wealth inequality, India is second only to Russia, where the richest 1 per cent own 53 per cent of the country’s wealth,” the report titled Better Business Better World said. The report was released at a two-day event of the United Nations Global Compact (UNGC) that has identified 17 sustainable development goals. “In India alone, our research shows that by 2030, the 60 largest opportunities created by achieving the Global Goals could generate business revenues and savings worth more than $1 trillion, out of the ‘global prize’ of $12 trillion. Pursuing these opportunities could also create nearly 72 million new jobs in India by 2030,” the report said.

To address the income disparity, the UN agency said India needs a different economic model – one that is not only low-carbon and environmentally sustainable, but that also recognises poverty, inequality and lack of financial access as new market opportunities for smart, progressive, profit-oriented companies. Zero hunger and poverty, good health and well being, quality education, clean water and sanitation, affordable clean energy, industry innovation and infrastructure and responsible consumption and production are some of the global goals identified for sustained development.

Noting that extreme poverty and income disparities could make it hard for businesses to invest in India with confidence, the report said only sustainable development would open up new opportunities and potential efficiency gains that would drive innovations and enhance reputation. “The global goals can only be delivered with the help of strong private sector engagement. Companies around the globe are thriving by being sustainable, and delivering attractive returns to shareholders. And some Indian businesses have already started taking the goals as serious signals of future policy and market direction,” it said. The report added that 140 Indian firms have already signed up to the 10 principles of the UN Global Compact, a guide to sustainable business behaviour for companies around the world.