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India's Rich-Poor Gap Still Among the World's Highest, Says World Inequality Report

India's Rich-Poor Gap Still Among the World's Highest, Says World Inequality Report

G Plus 3 months ago

GUWAHATI: India continues to record some of the deepest income and wealth divides in the world, according to the World Inequality Report 2026 released by the World Inequality Lab.

The study shows that the country’s richest households continue to capture the largest share of national income and wealth, while most Indians remain in the lower half of the global income distribution.

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The report finds that the top 10 percent of earners take home 58 percent of India’s total income, while the bottom 50 percent get only 15 percent. Wealth is even more concentrated. The top 1 percent owns about 40 percent of the country’s total wealth, and the richest 10 percent hold around 65 percent.

Despite rapid economic growth over the past decades, the report notes that average annual income is about €6,200 (PPP), which is roughly ₹5.5–₹6 lakh a year. Average wealth is around €28,000 (PPP), or roughly ₹25–₹27 lakh. At the same time, gender inequality continues to be a major concern, with female labour participation stuck at 15.7 percent, showing no improvement over the last decade.

The study also shows that India has slipped in global income rankings. In 1980, a larger share of India’s population belonged to the middle 40 percent globally. By 2025, almost all Indians are now in the bottom half of the world income distribution, highlighting how uneven the country’s economic gains have been.

The World Inequality Report 2026 argues that India’s inequality is “deeply entrenched” across income, wealth and gender, and says stronger public investment, fair taxation and social protection measures are needed to close the gap.

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