India's Rich & Miserly

India's wealthiest are the least generous
March 25, 2010 19:39 IST

This is the great Indian paradox. The country's economy is booming, with the number of millionaires and billionaires rising by the day. According to a research by Bain & Co, there are over 115,000 high-networth individuals in India.

Since 2000, this elite group has grown an average of 11 per cent annually. Between 2006 and 2007, the number of wealthy individuals in India surged by 23 per cent, which is the highest growth rate in the world.

While this may be good news, here is the other side of the India growth story.

Today, more than 400 million people live below the poverty line in India. The global meltdown has pushed an additional 25 million to 40 million citizens below the poverty line.

So how can a country like India bridge the gap between its rich and poor? Are India's wealthiest people doing their best to reach out to the poorest? Well, the generosity of India's rich population does not necessarily rise with income and education, says the Bain & Co study.

"The wealthiest have the lowest level of giving at 1.6 % of household income. While the 'high class', which is ranked one level below the 'upper class' on the income and education scale, donates 2.1% to charity, the middle class gives 1.9% of household income to philanthropy," says Arpan Sheth, partner, Bain & Company.