However, it is also one of the largest and fastest billionaire populations in the world. according to Forbes Indian magazine ranks third in the world in its billionaires, lagging only behind the United States and China.
This anomaly (coexisting with billionaires with low average income) raises key questions about the distribution of wealth, economic inequality and the nature of India’s growth story.
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The degree of this anomaly becomes clearer when we look at the ratio of USD billionaires to average income between 1997 and 2024, which is plotted against average income, as shown. In a rough sense, this ratio is a measure of wealth concentration, because larger numbers mean more billionaires are “supported” by the income of ordinary citizens.
The picture tells a vivid story. The United States, China and India are the world’s largest, second and fifth largest economies in 2023 respectively. India’s economy has grown by about eight times in name over the past 25 years, but the billionaire to average income ratio has soared rapidly, far exceeding the United States and China.
When China’s per capita GDP was similar to India’s current level in 2003, it only had about 10-15 billionaires. Today, there are about 200 in India. India’s much lower average income levels are much lower than any other country, a distinction that emphasizes the extreme concentration of wealth for a few.
At first glance, this phenomenon may be interpreted as a sign of India’s economic vitality and entrepreneurial talent. The country’s ability to create value in a relatively poor economy. For example, over the past decade, the rise of many unicorns (or startups worth over $1 billion) has been seen, indicating the emergence of a new generation of successful businessmen.
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But a more careful appearance reveals a more complex reality. according to Forbesif a billionaire makes money without inheriting generational wealth, it is described as “homemade”. With this measure, Indian billionaires are unlikely to be homemade compared to their counterparts in the United States and China.
For example, in China, this number is about 90%, in the United States, and in India, the number has been below 50% over the past decade. A large percentage of Indian billionaires come from established business families that inherit wealth and expand their wealth through diversified holdings.
This suggests that India’s wealth is often less about innovation and industrial vitality, at least with deep-rooted privileges and deep pockets. Globally, as of 2023, India ranked 46th out of 67 countries, ranking among the homemade billionaires proportions.
The dominance of the Indian billionaire class is vividly reflected in the country’s stock market. As of 2022, India’s 166 billionaires have net assets of about 20% of its major stock exchange market capitalization. By comparison, the net worth of more than 400 billionaires in China accounts for 18% of their market capitalization (although it has grown significantly since 2010), while the net worth of more than 700 billionaires in the United States accounts for only 10% of their stock market valuations.
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India’s billionaire paradox is not just a statistical curiosity. This reflects deeper structural problems in the country’s economy and governance. It raises questions about the feasibility of economic models that create disproportionate rewards without a shared prosperity. The rise of billionaires occurred in a country that is still struggling to obtain basic necessities. For example, according to the Food and Agriculture Organization, 55% of Indians cannot afford a healthy diet as of 2022.
The billionaire prosperity is the latest indicator of the bottom of India’s growth story: four decades of productivity boom may have solidified the deep-rooted enclave economy, coexisting with most of the relatively small elites, which is entirely e-school.
To be sure, there has been inequality in India and, of course, many have made progress. For example, over the past two decades, absolute poverty defined by the World Bank has been steadily declining. However, in many other ways, most progress has been slow to stop.
The meaning of this concentration of wealth also goes beyond inequality. Standard economics shows that a minority dominance in the stock market and major industries can stifle competition, limit opportunities for smaller businesses, and bring systemic risks to the wider economy.
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India’s billionaire paradox has sparked a wider dialogue about the economy and society it aspires to. Of course, other countries experienced similar age of gilding, and in other cases, very wealthy people became very influential philanthropists at the time. Despite some notable exceptions, such large-scale sharing and dedication have not been seen in India.
At this point, India’s unbalanced growth is more than just a conversation about policy prescriptions. Again, it is a political and moral question: about the values that will shape India’s growth in the coming decades.
These are the author’s personal opinions.
The authors are professor of economics at Azim Premji University and senior economist at the Institute of New Economic Thinking; and independent researchers.
