Skip to main content

Report suggests Indian democracy 'hasn't achieved' equitable economic decentralization

By Vikas Meshram 

The news that the current economic inequality in the country is worse than during British rule is unsettling. This suggests the harsh reality that our democracy has not achieved equitable economic decentralization. A recent report by Thomas Piketty and three other economists reveals shocking findings: in 2023-24, the top 1% of the wealthiest people in India hold 40% of the nation's wealth, with a 22.6% share in income. 
The report highlighting the growth of billionaires indicates the dominance of the wealthy class, pointing towards economic inequality driven by our wealth-centric economy. In fact, economic inequality had decreased during the 1980s. 
However, liberal economic policies in the era of globalization and liberalization have increased income inequality, highlighting the inconsistencies in our income tax system. There has been a long-standing demand for reforms in the country's tax structure, with taxes levied on the income and property of the wealthy. The revenue generated from this should be invested in improving health, education, and nutrition. However, this has not been seriously considered, leading to the continued ruthless exploitation of resources. 
The report states that a 2% tax on the total wealth of the country's 167 richest families in 2023-24 would have increased the country's total income by 0.5%. This effort would have helped bridge the widening gap of inequality. However, the current economic inequality crisis has not been taken seriously by those in power.
Certainly, the ever-increasing gap of inequality in any country can eventually become a weapon of social unrest, negatively impacting law and order. 
The roots of discontent and resistance in many countries around the world lie in economic inequality. When the level of economic inequality becomes unbearable, it triggers resistance. It is crucial to respect labor to maintain social balance in the country. 
The continuous decline in workers' income is not a good sign for any country. When 1% of the population lives a luxurious life while a significant portion of the population struggles for food, clothing, and shelter, it is not a healthy situation for any conscious democracy. This economic imbalance calls for a discussion on the significance of democracy. 
Recently, the Supreme Court's initiative of receiving thousands of crores in donations from the wealthy class to political parties underlines this economic inequality. The wealthy class, investing huge sums in political parties under the guise of election donations, eventually wants a significant share in democracy, influencing government practices and policies to serve vested interests. 
This highlights the contradictions within democracy. The common man may question how the wealth he spends his entire life earning goes to the wealthy in minutes, raising doubts about the system. This inevitably leads to social despair, which could ultimately result in social upheaval. Undoubtedly, this is a serious issue that the country's leaders need to address seriously. The extent to which the gap of economic inequality can be bridged will be a measure of the meaningfulness of our democracy.
Moreover, the increase in military spending in the defense sector globally is highly concerning, causing alarm around the world. Amidst all counter-terrorism measures, the global military expenditure, competition for arms, and lethal weapons race are nothing short of a danger signal. The world is under the terror of the disastrous consequences of nuclear armament, leading to a loud call for disarmament and peace globally. 
Despite the universal appeal for a world without war and disarmament, there is no consensus on the issue of arms production and accumulation for power balance. Arms not only cause extensive damage but also have a high risk of misuse if they fall into the wrong hands. Current events highlight that while Russia and Ukraine are at odds, tensions between Israel and Iran are escalating, and the clouds of war are constantly looming over China and Taiwan. 
In such an environment, the question arises whether we are heading towards a third world war, and it is natural to wonder if the world is becoming an experimental ground for the use of deadly weapons. The recent report by the Stockholm International Peace Research Institute raises similar concerns.
India has become the largest arms importer in the world. It has purchased most weapons globally in the past five years
The statistics in the Stockholm report are not only shocking but also terrifying. Despite all peace measures, the increase in global military expenditure and the rise in the arms trade is worrying. Notably, India ranks fourth among the countries with the highest military expenditure. The stockpiling of arms in the land of peace and non-violence exposes the disparity between its words and actions. 
While every country advocates for peace, the continuous arms race raises obvious questions. India has become the largest arms importer in the world. According to the Stockholm report, India has purchased the most weapons globally in the past five years. The report also mentions that Europe has nearly doubled its arms imports in 2019-23 compared to 2014-18, primarily due to the Russia-Ukraine war. 
Additionally, Asian countries have purchased the most weapons in the past five years. The Russia-Ukraine war has significantly impacted Russia's defense exports, causing it to rank third in arms exports for the first time, with the US and France in the first and second positions, respectively. The extensive arms and technology trade by the US is pushing humanity into a corner from which returning is difficult. 
Even the US, along with the world, has become a victim of this arms and violent mentality. The US's goal is to dominate the world and expand the arms business. On one side, the US and its NATO allies, and on the other, the Russia-China alliance, with neutral countries indirectly leaning towards one side or the other. In such a scenario, the only hope lies with the United Nations. 
Though its powers and objectives may seem superficial, the whole world is aware of them. In any crisis, it passes peace resolutions to shirk its responsibility. It plays no meaningful role in stopping the Russia-Ukraine conflict or the Israel-Palestine conflict, with its tough decisions ultimately surrendering to the veto power of the superpowers. 
Despite being the largest platform for countries worldwide post-World War II, the UN has a minimal role in stopping wars. In such a situation, who will stop the growing arms race and the possibilities of war in the world? 
The increasing arms race is evident, with the US displaying hypocrisy, leading the call for peace from war-bound countries while simultaneously boosting the arms trade. The policy to curb this needs to be addressed, but no one is paying attention to the fundamental question of who will bell the cat.

Comments

TRENDING

A comrade in culture and controversy: Yao Wenyuan’s revolutionary legacy

By Harsh Thakor*  This year marks two important anniversaries in Chinese revolutionary history—the 20th death anniversary of Yao Wenyuan, and the 50th anniversary of his seminal essay "On the Social Basis of the Lin Biao Anti-Party Clique". These milestones invite reflection on the man whose pen ignited the first sparks of the Great Proletarian Cultural Revolution and whose sharp ideological interventions left an indelible imprint on the political and cultural landscape of socialist China.

The Vande Mataram debate and the politics of manufactured controversy

By Vidya Bhushan Rawat*  The recent Vande Mataram debate in Parliament was never meant to foster genuine dialogue. Each political party spoke past the other, addressing its own constituency, ensuring that clips went viral rather than contributing to meaningful deliberation. The objective was clear: to construct a Hindutva narrative ahead of the Bengal elections. Predictably, the Lok Sabha will likely expunge the opposition’s “controversial” remarks while retaining blatant inaccuracies voiced by ministers and ruling-party members. The BJP has mastered the art of inserting distortions into parliamentary records to provide them with a veneer of historical legitimacy.

Ahmedabad's Sabarmati riverfront under scrutiny after Subhash Bridge damage

By Rosamma Thomas*  Large cracks have appeared on Subhash Bridge across the Sabarmati in Ahmedabad, close to the Gandhi Ashram . Built in 1973, this bridge, named after Subhash Chandra Bose , connects the eastern and western parts of the city and is located close to major commercial areas. The four-lane bridge has sidewalks for pedestrians, and is vital for access to Ashram Road , Ellis Bridge , Gandhinagar and the Sabarmati Railway Station .

Urgent need to study cause of large number of natural deaths in Gulf countries

By Venkatesh Nayak* According to data tabled in Parliament in April 2018, there are 87.76 lakh (8.77 million) Indians in six Gulf countries, namely Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates (UAE). While replying to an Unstarred Question (#6091) raised in the Lok Sabha, the Union Minister of State for External Affairs said, during the first half of this financial year alone (between April-September 2018), blue-collared Indian workers in these countries had remitted USD 33.47 Billion back home. Not much is known about the human cost of such earnings which swell up the country’s forex reserves quietly. My recent RTI intervention and research of proceedings in Parliament has revealed that between 2012 and mid-2018 more than 24,570 Indian Workers died in these Gulf countries. This works out to an average of more than 10 deaths per day. For every US$ 1 Billion they remitted to India during the same period there were at least 117 deaths of Indian Workers in Gulf ...

Proposals for Babri Masjid, Ram Temple spark fears of polarisation before West Bengal polls

By A Representative   A political debate has emerged in West Bengal following recent announcements about plans for new religious structures in Murshidabad district, including a proposed mosque to be named Babri Masjid and a separate announcement by a BJP leader regarding the construction of a Ram temple in another location within Behrampur.

No action yet on complaint over assault on lawyer during Tirunelveli public hearing

By A Representative   A day after a detailed complaint was filed seeking disciplinary action against ten lawyers in Tirunelveli for allegedly assaulting human rights lawyer Dr. V. Suresh, no action has yet been taken by the Bar Council of Tamil Nadu and Puducherry, according to the People’s Union for Civil Liberties (PUCL).

Myanmar prepares for elections widely seen as a junta-controlled exercise

By Nava Thakuria*  Trouble-torn Myanmar (also known as Burma or Brahmadesh) is preparing for three-phase national elections starting on 28 December 2025, with results expected in January 2026. Several political parties—primarily proxies of the Burmese military junta—are participating, while Aung San Suu Kyi’s National League for Democracy (NLD) remains banned. Observers expect a one-sided contest where junta-backed candidates are likely to dominate.

From crime to verdict: The 27-year journey that 'rewarded' the destroyers of Babri Masjid

By Shamsul Islam    Thirty-three years ago, on December 6, 1992, a 16th-century mosque was reduced to rubble by a frenzied mob orchestrated by the Rashtriya Swayamsevak Sangh (RSS) and its political fronts. The demolition was not a spontaneous outburst of Hindu sentiment; it was the meticulously planned culmination of a hate campaign that branded Indian Muslims as “Babur-ki-aulad” and the Babri Masjid as a symbol of historical humiliation. 

Global LNG boom 'threatens climate goals': Banks urged to end financing

By A Representative   The world is on the brink of an unprecedented surge in Liquefied Natural Gas (LNG) development, with 279 new projects planned globally, threatening to derail international climate goals and causing severe local impacts. This stark warning comes from a coalition of organizations—including Reclaim Finance, Rainforest Action Network, BankTrack, and others—that today launched the " Exit LNG " website, a new mapping project exposing the extent of the expansion, the companies involved, and their bank financiers.