Inequality in India – Increasing as Poor Stop Eating,Middle Class Stops Eating Out and Super Rich Buys Jets and Yachts

India’s Income Disparity is not growing among the rich and the very poor but also widening between its super rich and middle classes.Note India’s Middle Class is not as big as a percentage of the population in the developed countries and its per capita income is also much lower.However India’s Middle Class is growing as the economy grows by 8-9% and despite the lopsided economic growth some of the massive wealth that is being generated does trickle to the middle class.However those gains are being eroded by a Persistent Double Digit inflation which has entrenched itself.Despite periodic interest rate increases,India’s Central Bank has miserably failed on the Inflation Front in the last couple of years.First it was having too loose a policy to overcome the effects of the global eco  crisis in the aftermath of the Lehman collapse.Now it was too slow to raise rates as commodity price increased dramatically.

Middle Income Group Tightens Belt Against Double Digit Inflation

Upward spiraling inflation has led middle income families across the country to slash 65 per cent of spendings on entertainment, shopping and eating out to manage their limited monthly budgets, findings of a recent extensive survey by apex chamber ASSOCHAM show.
Nearly half (49.5 percent) of MIG either avoid shopping altogether or shop only for those things that are absolutely needed. Moreover, 34 percent said that their shopping has been restricted to only necessities and splurge in their spending is totally occasional.

found a distinction that during single digit inflation rate of less than 7%, a MIG family on average was spending roughly a sum of Rs. 4000-6000 per month on shopping, entertainment and eating out.

India Middle Class is sharply cutting down on shopping,entertainment and other discretionary expenses as food,education and medical costs go through the roof.A recent survey done by Assocham proved these anecdotal stories true as middle class has gone into a spending shell while the richer upper classes continue to spend affected.The only class that is feeling super great is the Super Rich who are going feeling gung ho and most likely in the world to spend on yachts and private jets.Note the Super Rich are seeing more billions pouring into their offshore bank accounts while poor Indians are finding it difficult in these days of high food prices to even get 2 square meals a day for their children.The shocking income disparity is seen when India’s richest man builds a $2 billion most expensive home in a country where 150 million children are hungry.The government of India as usual is totally corrupt and useless with millions of tons of grains rotting in its warehouses even as poor starve to death.

India’s super rich set eyes on luxury living; to splurge on jets & yachts

Indians are the most likely members of the global super rich to spend more on private jets and yachts over the next five years while Africans and Russians are expected to increase their charitable giving, a survey showed on Wednesday.

A poll of 160 advisers at a private bank within global financial firm Citigroup Inc , which represents 5,000 clients worth on average more than $100 million each, found super rich Indians are the most keen on buying jets and yachts, with 93 percent seeing spending increasing.