India has been ranked among the top five countries globally with the largest number of people living in poverty, according to the latest update by the United Nations Development Programme (UNDP) and the Oxford Poverty and Human Development Initiative (OPHI).
Flashing Disparities
India's wealth and income divide is growing and is among the highest in the world. The top 1% of India's population owns 40% of the country's wealth, and the top 10% own 80%. This is worse than the wealth distribution in Brazil, South Africa, and the United States.
In terms of Income distribution, India has roughly 1.2 billion lower-income individuals, 66 million middle-income individuals, 16 million upper-middle-income individuals, and barely 2 million in the high-income group.
Real Estate Barometer
The real estate market's recent sales figures present a stark picture.
According to Knight Frank's report on real estate activity in the third quarter of the ongoing calendar year, 46% of the total home sales across the top eight cities in India were concentrated in the luxury housing category which comprises homes priced at Rs 1 crore and above.
Meanwhile the mid (Rs 50 lakh - 1 crore) and affordable housing (under Rs 50 lakh) segments recorded a year-on-year decline of 13% and 14%, respectively.
In addition, independent studies indicate a demand for 29 to 50 million homes but, the challenge of affordability for lower-income groups remains a critical issue.
The Poignant Problems
In the meanwhile, India's wealth divide deepens, with the rich accumulating more wealth and the poor getting poorer.
In terms of housing, despite a government definition of housing as affordable if monthly payments do not exceed 30% of a household's gross income, this standard struggles to fully capture the reality of poverty & affordability in the current economic landscape.
The existing government criteria of affordable homes, put housing out of reach for many, with even government-provided houses starting at Rs 60 lakh in Mumbai.
What’s Next
Till we as a country achieve inclusive growth, social justice and equal economic representation, the divide between two India’s will continue with rich accumulating properties and large under-privileged population fighting to get a single roof over their heads.
