Piketty Urges India to Reintroduce Wealth Tax on Super-Rich

French economist Thomas Piketty advocates for India to implement wealth and inheritance taxes on its super-rich to address inequality. He cites significant potential revenue and current wealth concentration among India's richest 1%. However, the Indian government remains opposed, citing potential impacts on the middle class.

French economist Thomas Piketty has called on India to tax its super-rich more effectively, highlighting the country's significant wealth inequality. Speaking at an event in Delhi, Piketty emphasized the need for India to act on a G20 commitment to tax the largest fortunes globally.

Piketty, author of 'Capital in the 21st Century,' proposed a wealth tax of 2% on individuals with assets over 100 million rupees and a 33% inheritance tax on property of similar value, which he estimates could boost India's revenue by 2.73% of GDP. He noted that the national income share of India's top 1% now exceeds that of their counterparts in the U.S. and Brazil.

The call met resistance from India's chief economic adviser, V. Anantha Nageswaran, who warned of potential negative impact. Despite Piketty's claims, Indian Finance Minister Nirmala Sitharaman remains wary of reintroducing the wealth or inheritance tax, fearing burdens on the middle class.

(With inputs from agencies.)