Spend on handbags by saving on diesel.

Apparently there are 137,000 ultra high net worth households in India, which means their net worth is over Rs 250 million each. The number has jumped from 62,000 in 2010 to 137,000 in 2015, while the combined net worth has soared from Rs 45 trillion to Rs 128 trillion. Yet when it comes to paying income tax only 48,000 pay tax on an income of Rs 10 million and just 5,000 pay tax on an income of Rs 50 million. So, what are these ultra rich people doing with the money that most of us can only dream about? " The situation has started changing in India and over the last five years, brands like Michael Kors, Charles and Keith, Coach, Gucci, Louis Vuitton and even Hermes have started making their presence felt," says an article. Naturally, while ladies are buying expensive handbags men are buying cars costing upwards of Rs 3 million. Yet, they choose to buy diesel, rather than petrol, engines because the cost of diesel is lower in India, so running cost will be low. That is why the odd-even scheme in Delhi was just a gimmick. If they increase taxes on diesel to bring its value at par with petrol, like in the US, where diesel is more expensive, people will switch to petrol engines. This will bring down pollution without inconveniencing people. Seems strange that people with so much money try to save on pennies. The reason maybe that a large amount of their wealth is in real estate, which means that a lot of it is black money and, while their asset values maybe enormous, a lot of it is not disposable. The biggest problem in India is that it is not easy to become rich, because 68 years of socialism has resulted in a culture of mediocrity where merit has become a dirty word. New businesses starting up in India transfer their registered offices to Singapore, on reaching a certain size, because taxes are so high in India and rules keep changing according to the whims of politicians. Unions are gangs of thugs which prey on the vulnerable as an Americans artist found, in Kerala. You have to pay a ransom to union thugs even if they have not done any work for you. India's formal labor force is a paltry 3 million in  population of 1.25 billion, the rest are in the unorganized sector, where there is no job security, wages are low and there are no benefits. This in a country where 68,922 people are turning 25 years old everyday, which is 2.1 million every month. Even though there are so many seeking employment salaries will increase by 10.5% this year. Why? Because over 50% of graduates are unfit to be employed. The Bombay High Court is of the opinion that companies should earmark 2% of their profits to pay the medical bills of poor people. We do not know whether this is on top of the 2% of profits companies are forced to spend on social welfare under the CSR Act. When making money is so difficult it is no wonder that the rich save on diesel. It is at least 10% saving.