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Where India’s money is

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RG-District_bank_deposits_graphic_5The concentration of wealth in India’s cities, in its biggest cities, can be seen most clearly in this set of illustrations. These colourful circles describe the imbalance between the recorded wealth in the cities and in the districts.

The data come from the Reserve Bank of India’s ‘Quarterly Statistics on Deposits and Credit of Scheduled Commercial Banks’. In attempting to find and illustrate the distribution of bank deposits between India’s banking districts (there are 652) I ran quickly into the inequality challenge: how to make sense of the enormous disparities of wealth?

Graphics provides a way out. But a word about the distribution. At the 30th percentile level in the full list, a district’s bank deposits are around Rs 1,440 crore (14.43 billion). This rises to Rs 1,930 crore for the 40th, Rs 2,540 crore for the 50th, Rs 3,420 crore for the 60th, Rs 4,650 crore for the 70th, and Rs 7,420 crore for the 80th percentiles. From there the increases are much steeper: Rs 14,000 crore for the 90th and Rs 26,000 crore for the 95th percentile.

In the first image, the relative differences between bank deposits between the 30th and 60th percentiles are illustrated – a circle corresponds to bank deposits in crore and is labelled with the state code and district name. Here we see that the difference is between about Rs 1,400 crore and Rs 3,400 crore.

In the second image, the scale has changed with two examples each from the 60th, 80th and 90th percentiles. The differences are now between about Rs 3,400 crore, Rs 7,400 crore and Rs 14,000 crore.

The third image is where the disparity becomes immediately clear: Rs 14,000 crore of deposits are dwarfed by the tenth and ninth districts of the top ten – about Rs 79,000 crore and Rs 94,000 crore. And the last image shows the vast gap within the top ten – at this scale the districts which have less than Rs 3,400 crore deposits would be mere dots, and there are close to 400 of these districts!

This helps explain the structures of power in the cities and how one of the ways India’s wealth is recorded (no black money estimates, or property valuations, or stock or futures holdings) shows the staggering extent of inequality. Yes, the top ten banking districts – all heavily urbanised metropolises – have huge populations, but any per capita division would also have to take into account business and industry deposits and the large numbers of informal sector labour – households whose capacity to save may be only marginally better than that of households in rural districts.

Whichever way you choose to look at it, the picture is one of racing inequality. For more on the subject see ‘The big money in India’s cities’, ‘When the 65 million who live in India’s slums are counted’, and ‘Why India is ruled for its cities’.

Written by makanaka

November 2, 2013 at 16:26

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