Modi govt fuels wealth concentration, threatens democracy: Congress

The Congress party on Sunday, 5 October, raised alarm over the growing concentration of wealth in India, alleging that it is a direct outcome of the Narendra Modi government’s economic policies and warning that it threatens not only the economy but the “very soul of democracy”.

Congress general secretary Jairam Ramesh, who oversees the party’s communications, highlighted a recent media report showing that India is rapidly emerging as a hub for billionaires, with the number of ultra-rich individuals increasing year after year.

“One report after another is warning about the widespread concentration of wealth in India. While millions of Indians struggle to meet daily needs, just 1,687 people possess half the country's wealth,” Ramesh wrote in a post on X.

Ramesh argued that this massive concentration of wealth has created staggering economic inequality, fueling social insecurity and discontent across the country. Drawing comparisons to global trends, he said that extreme economic inequality combined with weakened democratic institutions has historically led to political instability in other nations.

“A few industrialists are becoming richer and richer due to the power nexus. The Prime Minister's policies are focused solely on the benefits of his industrialist friends,” he alleged, asserting that ordinary citizens are being sidelined in the country’s development.

The Congress leader further noted that the MSME sector, often called the backbone of India’s economy, is under severe pressure. He attributed this both to domestic economic policies and to the government's foreign policy decisions.

“Earning opportunities for ordinary people are shrinking. Inflation has risen to levels where even employed individuals are increasingly burdened with debt rather than able to save. Investment in education and health is steadily declining, and social security schemes are being weakened,” Ramesh said.

He also flagged issues in MGNREGA, a flagship employment guarantee scheme, saying that workers are now facing wage crises and delays in payment, weakening the safety net that previously supported millions.

“Such extreme concentration of wealth is not just a problem for the economy, but a direct attack on the very soul of democracy. When economic power is concentrated in a handful of hands, political decisions also begin to favour them,” Ramesh warned.

According to the M3M Hurun India Rich List 2025, the cumulative wealth of India’s richest 1,687 individuals is estimated at Rs 167 lakh crore, nearly half of the nation’s GDP. The list saw 284 new entrants, with 148 individuals making their debut, and the total wealth of the list increased by Rs 1,991 crore every day.

Ramesh pointed out that India has been creating a billionaire every week for the past two years, underlining the rapid expansion of wealth among a tiny fraction of the population while the majority continue to struggle with everyday financial challenges.

He concluded that this trend is gradually excluding millions of citizens from the democratic and developmental processes, raising a serious concern for the health of Indian democracy.

With PTI inputs