India has a very strong legacy of extreme inequality

A Thomas Piketty interview.

“And what’s unique about India is that it used to publish this data until 2000. There was this All India Income Tax Statistics Report and this has been interrupted. For the past 15 years during this period of very high growth in India, nobody knows how income tax operates, how have top income groups in India done as compared to GDP growth.

When we look at the consumption of average Indians or bottom 50% Indians, we don’t see the kind of GDP growth rates that we have in GDP statistics. The possibility, of course, is that a lot of the growth has gone to top income groups. Is this true? Has the income tax system been able to make this group contribute to the tax burden in proportion to the increase in their income, nobody knows.”

The full interview