Capital and the Hindu rate of growth: Top Indian wealth holders 1961-1986

Rishabh Kumar

No 1608, Working Papers from New School for Social Research, Department of Economics

Abstract: Did India's stagnant growth performance until the 1980s increase or decrease the wealth of the elite? Using estate tax data I compute a series which highlights the relative importance of top wealth holders in India between 1961-1986. I find that a combination of policies and shocks were able to significantly depress the personal wealth of the Top 0.1% over this period. A portfolio decomposition by asset categories for the rich reveals that there was a U shaped trend in the average value of movable assets while wealth invested in land significantly declined. Disparity within top wealth groups also follows a shrinking and swelling, consistent with the intervention of the state in private capital. These results have implications for the equalizing forces inherent in tax policy vis-a-vis the rich and the role of the state in regulating capital in poor nations.

Keywords: Wealth; India; Estate Multiplier (search for similar items in EconPapers)
JEL-codes: H1 N3 O1 (search for similar items in EconPapers)
Pages: 32 pages
Date: 2016-10
New Economics Papers: this item is included in nep-his
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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