Narendra Modi, Rahul Gandhi and the politics of wealth redistribution in India

The wealth redistribution jibe is a calculated political move from Modi. This is so because with his move, he successfully converted the 2024 General Elections into a poll battle between Congress and BJP. Modi knows very well that it will be easier for him and BJP if Congress occupies principal opposition space, not the I.N.D.I.A alliance

Prime Minister Narendra Modi is known to give shocks and spring surprises. On November 8, 2016, he surprised the nation by going in for demonetisation of high-value currency notes of Rs. 500 and Rs. 1,000 denominations. We all know what happened thereafter.

A week ago, Modi took everyone by surprise again by alleging that the Indian National Congress (INC) if voted to power in the ongoing polls would go for redistribution of wealth in the country.

Citing the Congress’ manifesto for the 2024 General Elections and an earlier statement of former prime minister Manmohan Singh, Modi made this startling accusation at an election rally at Banswara in Rajasthan. He went on to allege that the grand old party would even snatch mangalsutras from women and distribute among those who had more children, an apparent reference to the Muslim community. His statement, which obviously undermined his stature as a two-time Prime Minister, kicked up a huge political storm.

But what does the Congress manifesto state? The party divided its manifesto into 11 sections apart from an introduction. Interestingly, it named the first section as ‘Equity’. This section has four sub-sections with ‘Social Justice’ sub-section at the top. Modi used the first point under the Social Justice sub-section to throw the ‘mangalsutra’ jibe at Congress. This point says, “Congress will conduct a nation-wide socio-economic and caste census to enumerate the castes and sub-castes and their socio-economic conditions. Based on the data, we will strengthen the agenda for affirmative action”.

Modi linked this with Manmohan Singh’s 2006 speech wherein the former prime minister said Muslims must have the first claim on resources. Singh, who was two-term prime minister of Congress-led United Progressive Alliance (UPA) from 2004 to 2014, said it in a different context, but his statement has come in handy for the BJP now.

The ensuing debate over redistribution of wealth took an interesting turn and pushed Congress further into a corner when Sam Pitroda, a Nehru-Gandhi family loyalist and chairman of Indian Overseas Congress, mooted imposing inheritance tax in India on the lines of the prevailing practices in some States in the US. The inheritance tax is a tax levied on the wealth of a person after he or she passes away. Congress swiftly distanced itself from Pitroda’s untimely remarks. It is not the first time that Pitroda has landed Congress in trouble. However, his latest faux pas was lethal political ammunition for BJP, which started highlighting it in every subsequent election meeting, saying Congress would snatch away wealth from every family in the form of inheritance tax.

Intriguingly, Modi’s wealth redistribution jibe at Congress came just a day after the first phase of the seven-phase polls was over. This raised doubts whether BJP’s performance was weak in the first phase. But Modi’s controversial statement looks like a calculated political move as he aims at a rare third consecutive third term as India’s PM. This is so because with his political manoeuver, he successfully converted the 2024 General Elections into a poll battle between Congress and BJP. Modi knows very well that it will be easier for him, and BJP, if Congress occupies principal opposition space in the polls, not the I.N.D.I.A alliance of which Congress is a key partner for this election. Moreover, it will now be a Modi versus Rahul Gandhi battle!

We know what happened when Congress pitted Rahul against Modi in 2019. Congress lost and as a consequence, Rahul Gandhi had to quit as its president in July 2019. That may be the reason why Congress has not publicly announced that Rahul will be the prime minister if Congress wins, though several party leaders, including Telangana Chief Minister Anumula Revantha Reddy, have consistently been saying that making Rahul the prime minister is their goal.

Apart from this BJP versus Congress narrative, Modi’s latest political move also seeks to prevent the middle class, its core support base, from drifting towards the grand old party. Besides, the usual Hindutva narrative will also come into play. It will be interesting to see how Congress will turn the tables on Modi on the wealth issue and beyond.

But is it possible to redistribute wealth in India? It’s very unlikely. India has already emerged as a capitalist nation with an ever-growing middle class. Moreover, its middle class in urban areas spans across all castes and creeds. And their influence in elections is also growing.

I don’t think this aspirational middle class will allow the governments to go for redistribution of wealth, an outdated idea which has its roots in communist ideology.

But there will not be any opposition from any quarters if the governments at the Centre and in the States use more funds from the Budgets and take up other meaningful efforts for the uplift of those people who are genuinely poor. It has already been happening. It will continue to happen.

However, the governments should be careful that such efforts help only those who are in need. Moreover, several industrialists, industrial groups and successful entrepreneurs in India are also allocating a part of their earnings for social activities in education and other areas. This trend will catch up further as even people from poor backgrounds are turning into successful entrepreneurs these days. India will be able to eliminate poverty faster if it encourages entrepreneurship on a large scale. But going for wealth redistribution is akin to killing a golden goose, nothing less. Moreover, it’s not practically possible.