🇮🇳 Why Most Indians Still Earn Low Salaries While the Rich Get Richer: The Hidden Truths Behind Inequality

Introduction

Despite being the world’s fastest-growing economy in 2025, India continues to face a severe wealth gap. While billionaires thrive in industries like tech, real estate, and finance, the average Indian earns just enough to meet basic needs. Why does this imbalance persist even after 75+ years of independence and economic reforms?

This post dives deep into the constitutional, political, and economic structures that have enabled the rich to get richer while the majority of Indians still earn low salaries. We’ll also uncover lesser-known facts that rarely make it to headlines.

📈 The Reality of Indian Income Inequality

Top 10% of Indians own 77% of the national wealth (Oxfam India, 2024)

Over 450 million Indians earn less than ₹5,000/month

CEOs of major Indian firms earn more in a single day than an average worker does in a year

📄 Historical and Constitutional Roots

1. Colonial Legacy Still Shapes Wealth Distribution

Land ownership and caste-based economic access were disrupted under British rule and never fully restructured post-1947

Zamindari system's after-effects still influence real estate and agrarian control in rural India

2. Flawed Implementation of Constitutional Directives

The Directive Principles of State Policy (Article 38 & 39) aimed to reduce inequality

But they are non-justiciable (not legally enforceable), leaving them open to weak enforcement

3. Reservation Benefits Don’t Always Reach the Poorest

While reservation helps uplift some communities, creamy layers often dominate the benefit pool, leaving behind those most in need

🏢 Why Salaries Remain Low for the Majority

1. Oversupply of Labor

Millions of graduates each year with limited skilled jobs = high competition, low wages

2. Informal Sector Dominance

Over 80% of Indians work in the unorganized sector, with no salary protections, unions, or benefits

3. Education Doesn’t Match Industry Needs

Most Indian degrees are theoretical and don’t prepare students for high-paying jobs

Lack of soft skills, English fluency, and vocational training deepen the wage gap

4. Corporate Practices Favor Profit Over Fair Pay

Top companies prioritize shareholder wealth and automation, keeping wage growth minimal despite rising revenue

🤝 Why the Rich Keep Getting Richer

1. Tax Policies and Loopholes

High net-worth individuals and corporations use tax havens and creative accounting to avoid taxes

2. Stock Market & Real Estate

Rich individuals invest in appreciating assets, while the poor live paycheck to paycheck

3. Political Influence

Major business houses fund elections and get favorable policies, subsidies, or bailouts in return

4. Intergenerational Wealth

Rich families accumulate and transfer wealth, while lower-income groups have nothing to pass on

💡 Unknown & Shocking Facts

In 2023, India added 20 new billionaires while over 190 million Indians slid into poverty

Top 1% of Indians emit more carbon per capita than the bottom 50% combined

A CEO in India earns 240 times more than an average salaried employee

Over 80% of India's GDP growth comes from sectors that employ less than 10% of the population

🔹 Is the Constitution to Blame? Or Something More?

The Indian Constitution guarantees equality, but structural issues like implementation failure, loopholes in law, and a growing disconnect between governance and grassroots realities have allowed the divide to grow.

Economic policies often benefit the urban elite and top 5%, while the rural and semi-urban populations face poor infrastructure, limited education, and job insecurity.

💪 Can This Be Fixed?

Stronger implementation of welfare policies and skill development

Reforming labor laws to protect workers in the gig and informal economy

Progressive taxation on the ultra-rich and corporate entities

Investments in rural education, healthcare, and entrepreneurship

⚠️ Disclaimer

> This blog post is for informational purposes and aims to spark awareness about income inequality in India. The facts cited are based on reports from Oxfam, NITI Aayog, and other public sources. Readers are encouraged to research further and engage critically with the data.