The "paradox of poverty" refers to the coexistence of resource abundance alongside widespread poverty.

Recent data shows India's richest 1% own 73% of the country's wealth, highlighting the stark paradox of poverty amid economic growth.

Understanding the Paradox of Poverty

• India reduced multidimensional poverty from 55.1% to 16.4% (2005-2021) yet resource inequality widened
• GDP growth averaging 6-7% annually while bottom 50% population share in wealth declined
• Technology boom creating billionaires while rural areas lack basic digital infrastructure
• Export growth in IT and pharmaceuticals contrasting with persistent rural unemployment

Inequality in Resource Ownership Pattern

• Agricultural land concentration: Top 10% farmers own 60% of cultivable land while bottom 50% own merely 2.3%
• Urban property disparity: Metropolitan areas witness extreme wealth concentration with slum populations lacking basic housing rights
• Mineral resource ownership: Private corporations control majority mining rights while local communities remain impoverished
• Financial assets: Top 10% Indians hold 77% of total household wealth (Credit Suisse Report 2022)

How Inequality in Ownership Causes Poverty

• Land & Agricultural Inequality: Limited land resources decreases ability to use the resource as collateral for loans, limiting investment and perpetuating poverty.

• Resource Curse / Minerals & Forests: Local populations, often tribals, are displaced from forests/mines without adequate compensation, losing both livelihood and cultural capital.

• Wealth & Capital Concentration: Poor households lack access to productive assets, education, and credit, trapping them in low-income cycles.

• Social Inequality & Exclusion: Resource ownership is also shaped by caste, gender, and class hierarchies. Dalits and women traditionally excluded from land ownership → economic marginalization.

Government Initiatives in this regard

• SVAMITVA Scheme: Property cards distributed to 65 lakh rural households
• PM-KISAN: Direct income support reaching 12 crore farmers
• MUDRA Yojana: ₹18 lakh crore loans to micro-enterprises

Addressing resource ownership inequality through Land Acquisition Act amendments and Forest Rights Act implementation remains crucial for achieving inclusive growth and eliminating the paradox of poverty.