Renowned political economist Gautam Sen has sounded the alarm over the potential exodus of India’s wealthiest figures, including Ambani, Adani, and Tata, to tax havens like Dubai in a bid to sidestep proposed inheritance taxes. Sen, a former figure at the London School of Economics and UNDP, cautioned against implementing inheritance taxes, citing Sweden’s decision to abolish them due to wealthy individuals fleeing. He emphasized the adverse impact on economic growth and wealth retention, drawing parallels with Sweden’s experience.
Congress leader Sam Pitroda’s suggestion to mirror the US inheritance tax model faced scrutiny from Sen, who deemed it unsuitable for India. He highlighted the impracticality of redistributing wealth from a small taxpayer segment and the challenges associated with such a policy’s implementation.
Additionally, Sen expressed skepticism about the feasibility of surveying all households and businesses, pointing out India’s significant strides in improving living standards through infrastructure and welfare initiatives.
While acknowledging temporary wealth disparities in burgeoning sectors, Sen stressed the absolute improvement in living standards for the poorest sections of society. He cautioned against radical measures like inheritance tax, citing potential social and political upheaval and vulnerability to external threats.
Despite these concerns, Sen remained optimistic about India’s economic trajectory, citing rapid growth and infrastructure development under stable governance. He emphasized the importance of policy continuity to sustain economic progress and ensure India’s long-term prosperity.
