The number of millionaires and high networth individuals (HNIs) is growing in India. In the last fiscal year, 5,012 people got a chance to enter the cosy club. It swelled the millionaire club of India to more than 871,000. You may gloat on these shimmering statistics, but many aspects of the same report leave you sad and dejected.
Income inequality is rising in the country, leading to exasperation among the middle class. For the uninitiated, HNIs are those who are still left with property or financial instruments worth $1 million or ₹9.5 crore after meeting all their financial obligations. In fiscal year 2025 (FY25), this club swelled by 6%, which was comparatively less. Between calendar years 2021 and 2023, with the stock market and real estate enjoying a bull run, the HNI club saw an intake of anywhere between 5% to 9%. These are the fortunate few who control 65-75% of the country’s wealth and businesses.
However, we aren’t the only victims of income inequality. The gap is widening across the globe, in developed countries such as the US and Japan, middle-income countries such as China, and also among the entire group of developing nations. A report by the Capgemini Research Institute and UBS Global Wealth suggests that the world has seen an increase in average wealth, yet the average person’s financial condition has deteriorated. We have new money magnates like trillionaire Elon Musk brushing aside old-money royalty, and yet the same societies experience growing hardships at the bottom of the economic pyramid.
This is why the world is hurtling towards rising criminal activities and disaffection. The trend is posing a challenge not only to families, societies, or administrative structures but also to the integrity of nations.
Recall the demonstrations in Sri Lanka, Bangladesh and Nepal. Public anger led to a change in political leadership in these three countries. Globally, including at our former colonial master, Britain, governments have tasted the bitter pill of violent demonstrations.
During violent demonstrations, I was closely watching the youth in our neighbourhood. Almost everywhere, reels of politicians and the rich went viral, with demonstrators lamenting the obscenely opulent lives of the wealthy and famous while they struggled to afford even two square meals a day. In India, the situation mercifully isn’t that bad, but it isn’t normal either. The growing number of educated young men and women turning to cybercrime, lured by the promise of a “quick buck” and a “reel-worthy luxury lifestyle”, would startle any conscientious observer.
Consumerism has driven Fomo (fear of missing out) to dangerous levels among youth. And rising income inequality is adding fuel to the fire.
Often, it’s said that if India has to progress economically, it needs to align its productivity and economic policies with global needs. We have the world’s largest number of graduates and engineers, but when we assess their productivity, we realize not all are employable. According to a study, only 56.35% of Indian graduates are employable. It means over 43% are condemned to struggle.
Among the employable graduates, most are engineers, with the highest demand for computer science graduates. Though they, too, face mounting challenges in the age of artificial intelligence (AI). Are they prepared to deal with it? Coding and theory will only give 46% effective employment.
The sad fact is that we don’t have much time left to fill the gap. Those who call India a young country may find their vigour dampened when they discover that only 66% of the population is of working age. They fall in the 15-59 age bracket. We have little time left to harness the demographic dividend. If we fail, India risks becoming old before becoming rich.
It’s not a coincidence that most countries are facing the same malady. If they don’t increase the productivity of their workforce, they will lag behind in the age of automation and AI. It will raise the threat of neocolonialism. We can already see the green shoots of this trend. Agencies like the UN that are supposed to protect human rights and democracy are powerless in front of developed countries. Russia’s invasion of Ukraine, Israel’s act in Gaza and the attack on Iran are proof of it.
It also raises the question about what will happen if the tragedy of social inequality is not addressed globally? Will it lead to mass starvation, a third world war, nuclear disaster, or something else?
Shashi Shekhar is editor-in-chief of Hindustan. Views are personal.