A new empire is quietly taking shape in the land of a thousand contradictions - the Billionaire Raj. The term "Billionaire Raj" was popularized by British journalist and author James Crabtree in his 2018 book The Billionaire Raj: A Journey Through India's New Gilded Age. It refers to the rising dominance of India’s ultra-rich - a small group of billionaires who command enormous economic and political influence - and the increasingly stark divide between them and the rest of the population (Crabtree, 2019). It's a modern twist on the "British Raj" - but instead of colonial rulers, it's Indian tycoons at the helm, shaping everything from policy to public opinion. A study by the World Inequality Lab rightly pointed out that ‘the Billionaire Raj’ headed by India's modern bourgeoisie is now more unequal than the British Raj headed by the colonial forces.
To understand the Billionaire Raj, we have to look back. Post-independence, India operated under the License Raj - a system of bureaucratic control that restricted private enterprise and tightly regulated the economy. While intended to protect Indian industries, it often led to inefficiency and corruption. In 1991, economic liberalization changed everything. India opened up to the global market, removed many restrictions, and ushered in a wave of private entrepreneurship. India’s journey from the License Raj to a more liberalized economy has been nothing short of revolutionary. Since the economic reforms of 1991, India has produced a staggering number of billionaires - from tech giants like Infosys founders to industrial magnates like Mukesh Ambani and Gautam Adani. According to Forbes, India is now home to more than 150 billionaires, placing it among the top five nations globally in terms of ultra-wealthy individuals. But as this club of super-rich expands, so does the difference between them and the rest of the population.
The stark reality of two Indias:
Step into South Mumbai, Lutyens' Delhi, or Bengaluru’s gated communities, and you’ll see glimpses of global affluence: luxury cars, private jets, and skyscraper mansions. Contrast that with rural India or urban slums, where millions still lack basic healthcare, sanitation, or quality education. It’s this stark divide that fuels the conversation around the Billionaire Raj. India’s soaring income inequality is now among the highest in the world. The gap between the haves and have-nots is starker than in the US, Brazil, and South Africa.
Wealth concentration is not just a social concern - it’s a structural issue. According to Oxfam’s reports, the top 1% of Indians own more than 40% of the country’s wealth. Meanwhile, the bottom half of the population holds barely 3%. The report also states that there are 119 billionaires in India. Their number has increased from only 9 in 2000 to 101 in 2017. Between 2018 and 2022, India is estimated to produce 70 new millionaires every day. When the statistics give you numbers, the reality in front of us is even more alarming. This isn't just inequality - it’s an imbalance with long-term economic consequences.
Another interesting statistic given by Oxfam’s report states that it would take 941 years for a minimum wage worker in rural India to earn what the top paid executive at a leading Indian garment company earns in a year. Many ordinary Indians are not able to access the health care they need. 63 million of them are pushed into poverty because of healthcare costs every year - almost two people every second. While the Indian government barely taxes its wealthiest citizens, its spending on public healthcare ranks among the lowest in the world. In the place of a well-funded health service, it has promoted an increasingly powerful commercial health sector. As a result, decent healthcare is a luxury only available to those who have the money to pay for it. While the country is a top destination for medical tourism, the poorest Indian states have infant mortality rates higher than those in sub-Saharan Africa. India accounts for 17% of global maternal deaths, and 21% of deaths among children below five years.
The Power Play
What makes the Billionaire Raj unique and controversial? It is not just the scale of wealth but the proximity of that wealth to power. In a healthy democracy, political power should remain accountable to the public. But in the Billionaire Raj, critics argue that wealth often buys influence. Business leaders are seen to have close ties with politicians, media outlets, and regulatory bodies. Indian billionaires often hold disproportionate sway over policy decisions, media narratives, and public infrastructure projects. Allegations of crony capitalism are frequent, with critics pointing to how regulatory environments often seem tailored to favor a few powerful players.
This entanglement of wealth and power isn't unique to India, but the speed and scale at which it’s happening here, in a developing democracy, raises urgent questions.
Can India Afford the Billionaire Raj?
The question isn't whether India should have billionaires - innovation and wealth creation are essential for growth. But the debate lies in how that wealth is created, distributed, and taxed. Without fair competition, progressive taxation, and a strong social safety net, the Billionaire Raj risks turning into a plutocracy - where wealth dictates policy, and aspiration has a price tag.
For India to thrive as a democracy and an economy, it must find a balance: encouraging entrepreneurship and innovation while ensuring that prosperity doesn't remain the privilege of a few. India stands at a crossroads. Will it be a country of a billion dreams or one ruled by a billionaire class? The answer depends on the choices its leaders, citizens, and entrepreneurs make today. A truly great economy isn’t just measured by its richest but by how it lifts its poorest. The growing imbalance between haves and have-nots can act as a barrier to sustainable growth, social harmony, and inclusive development.
India’s inequality levels have reached historically unprecedented highs. The "Billionaire Raj" is not merely a metaphor - it's a measurable reality. Without robust and inclusive economic policies, the current trajectory may lead to further concentration of power and wealth, undermining democratic and developmental goals.
Reference
Bloomberg, 26 March 2024. ‘Billionaire Raj’ Is Pushing India Toward Autocracy, https://www.livemint.com/news/india/billionaire-raj-is-pushing-india-toward-autocracy-11711405158608.html
Bharti, N. K., Chancel, L., Piketty, T., & Somanchi, A. (2024). Income and wealth inequality in India, 1922-2023: The rise of the billionaire raj.
Chancel, L., & Piketty, T. (2019). Indian income inequality, 1922‐2015: from British Raj to billionaire raj?. Review of Income and Wealth, 65, S33-S62.
Crabtree, J. (2019). The billionaire raj: A journey through India's new gilded age. Crown.
Oxfam, India: extreme inequality in numbers | Oxfam International https://www.oxfam.org/en/india-extreme-inequality-numbers
#inequality #billionaire #wealthinequality #incomeinequality
Copyright © 2025. Rajagiri Business School. All Rights Reserved. Website Designed and Maintained by Intersmart