Considering the amount of money held by Indians in foreign banks, India may be richer than what the World Bank or International Monetary Fund’s statistics reveal. In addition, if one were to take into account benami land and gold transactions, and unaccounted trade in informal markets, India may turn out to be even richer. I can understand that official agencies like the Central Statistical Organisation may be hesitant about estimating such incomes, but that should not prevent enlightened economists from speculating about the implications of India’ high middle-income status and the growing income inequality in the country. The hidden massive inequality in official statistics is an invitation for social uneasiness and loss of business confidence.
Chandrashekhar G Ranade Washington DC
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