What a $600m wedding says about India’s attitude to wealth

The Ambani nuptials enticed everyone from Justin Bieber, Shah Rukh Khan to John Kerry and John Cena.

Photo byphotograph: ap

When Beyoncé took the stage at a pre-wedding gathering for Isha Ambani in 2018, the nation was buzzing with excitement. Being invited to such an event was seen as a mark of prestige among the elite, including high-profile business moguls and political figures. The wedding, which included numerous side events, was rumored to have cost over $100 million. Such an amount was unimaginable for most, yet the Ambani family, who control a significant portion of Reliance Industries, the nation's most valuable firm, which spans from telecommunications to oil processing, was unaffected by such financial constraints. Despite criticism from some about the wealth of the event, the majority of Indians seemed to view it as a sign that India and its business sector were once again shining brightly.

Given this, one might have anticipated a similar reaction to the months-long celebrations of Isha's brother Anant, which ended on July 14th. The event boasted even more global celebrities (Katy Perry, Justin Bieber, and Rihanna), more lavish decorations (with dresses adorned with gold and gemstones the size of golf balls), and a higher price tag (with estimates ranging from $600 million). It significantly boosted India's thriving wedding industry, which brings in around $130 billion annually, making it the second-largest sector in terms of consumer spending. Behind the stunning dresses at the Ambani wedding were numerous designers, tailors, and seamstresses; behind the lively music and intricate sets were countless musicians, carpenters, and choreographers. The wedding filled up hotels, private jets, a fleet of golf carts, and even a cruise ship.

However, this time around, the response was much more varied. As the Juggernaut, a digital magazine, put it, it "reveals the influence of Asia's wealthiest family. Yet, it also left a sour taste."

The Juggernaut wasn't the only one feeling a bit off. Narendra Modi, the prime minister of India, also took part in one of the events preceding the ceremony. However, the Gandhi family, who are the leaders of the political opposition on the left side of the spectrum, deliberately chose not to attend. The foreign political figures present were mostly former ones (Tony Blair, Boris Johnson) and appeared out of place. John Kerry, the former climate envoy of the United States, was seen mingling with Amin Nasser, the CEO of Saudi Aramco, the largest oil company in the world, at an event that was largely funded by the wealth from Reliance's massive petrochemicals business. This business, which adds to the complexity, also refines oil from Russia.

Certainly, Anant's lavish event seems to be the final event of its kind for a while. This is not only because he was the last child born out of wedlock to Mukesh, the head of the Ambani family, and because no one (with the possible exception of the Gautam Adani family, India's wealthiest businessman) can rival the Ambani family's wealth. The government under Mr. Modi has grown more cognizant of the public's growing dissatisfaction with increasing inequality, which might have played a role in the Bharatiya Janata Party losing its complete control in a recent election.

Rapid economic growth and a booming stock market have led to increased wealth for India's elite but have not resulted in many new employment opportunities or wage increases for the lower classes. Between the weddings of Isha and Anant, India's GDP per capita increased from $2,000 to $2,500 (not adjusted for inflation). In contrast, during the same period, the Ambani family's wealth increased from $47 billion to $122 billion.

More disappointingly for many Indians, their wealth increased by $10 billion in just one month. The share price of Reliance jumped by 8% following the company's decision to increase prices for its 470 million customers through its Jio telecoms division. To the Ambani family, this might have made their $600 million celebrations seem like a steal. However, to the majority of Indians, it appears to highlight a disconnect between the Ambani family's success and the economic and social conditions of the country.

Sources:

The Economist