The 2024 Global Multidimensional Poverty Index (MPI) reveals stark realities about poverty, with 1.1 billion people across 112 countries experiencing acute deprivation. India tops the list globally, with 234 million people living in poverty, as reported by the United Nations Development Programme and Oxford’s Poverty and Human Development Initiative. The MPI measures poverty through ten indicators covering health, education, and living standards, mapping deprivation profiles for households across the globe.
Another concerning report, the 2024 Global Hunger Index, ranks India 105th out of 127 countries, labeling the nation’s hunger level as “serious” with a score of 27.3. This raises significant questions about the root causes of poverty and hunger in India, necessitating a shift in perspective to address these pressing issues.
A long-standing issue in Indian governance is black money—illegally acquired income that remains untaxed. Politicians, with a few exceptions, frequently discuss black money yet fail to address its root causes. “As long as there is a criminal-political-bureaucratic-rich nexus in the country, none can solve the problem of Black Money,” underscores the report. This systemic corruption sustains the cycle of wealth inequality and stifles economic progress.
Indian funds in Swiss banks reached a 14-year high in 2021, with 3.83 billion Swiss francs (about 305 billion rupees) deposited by Indian individuals and companies. These deposits have continued to grow, with Russia’s deposits trailing far behind. It’s a “bitter reality” that highlights the volume of Indian black money held securely in Swiss accounts. This situation prompts a stark assertion: “India is a very rich country with economically deprived people.” This contrast raises critical questions: if India is wealthy, where is the wealth concentrated? Why are currency notes worth crores uncovered during election seasons? Recently, unaccounted cash was seized in Maharashtra, further spotlighting the ongoing problem of black money.
A Kotak Wealth Management study estimates that India has approximately 65,000 super-rich households, with a combined wealth of around 45 trillion rupees (US$1 trillion), anticipated to rise to 235 trillion rupees (US$5.3 trillion) in the coming years. Wealthy industrialists, corrupt politicians, and dishonest bureaucrats have stashed away significant funds in foreign accounts. An alarming trend of Indian tourists in Switzerland also points to this illicit flow; in 2023, Indians recorded over 600,000 overnight stays in Swiss hotels, a number expected to reach 900,000 in five years. “Demand from India is growing exponentially,” notes Switzerland Tourism CEO Martin Nydegger. An official monitoring these transactions suspects this surge correlates with the movement of black money.
The persistence of black money abroad erodes the Indian economy, depriving it of wealth essential for growth. Some experts argue that the existence of tax havens facilitates this capital outflow from developing nations to richer nations, framing it as a conspiracy. By supporting tax havens, they assert, developed nations exacerbate capital flight from economically vulnerable countries, weakening their domestic economies.
Wealth disparity is not confined to corporate sectors in India. Religious institutions, too, boast substantial assets. Temples adorned with gold and diamonds, luxurious mosques, marble-built Sikh and Jain temples, and multi-crore ashrams are becoming more common. This competition among religious groups mirrors corporate infrastructure, indicating another dimension of wealth disparity. “Unequal distribution of wealth and unaccounted money are the real causes for poverty and the presence of the economically backward and marginalized people in India,” the article suggests, with blame placed on self-serving corporate interests, unprincipled politicians, corrupt bureaucrats, and influential religious leaders.
In India, the links between politicians, bureaucrats, and corporations facilitate an extensive network of illegal wealth preservation. Regardless of political affiliation, the media regularly reports on multi-crore rupee transactions involving public officials. The rapid financial growth of certain members of the Legislative Assembly or Parliament often raises questions: “How does a simple MLA or MP or a government official earn crores of rupees within a short period?” This accumulation of wealth among public officials highlights systemic corruption, especially when well-connected individuals enjoy privileges even while imprisoned. Money power sustains their influence, which leaves the common citizens sidelined.
The Indian government has enacted several laws to counter black money and corruption, yet these laws rarely deliver tangible results. Notable laws include The Fugitive Economic Offenders Act (2018), The Central Goods and Services Tax Act (2017), The Benami Transactions (Prohibition) Amendment Act (2016), The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act (2015), and the Prevention of Money Laundering Act (2002). These laws aim to curb illicit wealth; however, their impact remains largely confined to paper. The irony lies in the existence of these laws amidst ongoing illegal transactions and unaccounted wealth held domestically and abroad.
Renowned Indian poet Rabindranath Tagore’s words reflect the collective hope for change: “This is my prayer to thee, my Lord… give me the strength never to disown the poor… and help me to build a country where the mind is without fear and the head is held high and where the people are not broken up into fragments of narrow domestic walls of disparities and discriminations.” Beyond this sentiment, the article emphasizes the responsibility of every citizen to pursue personal transformation and actively participate in enforcing existing laws to combat black money and corruption.