World Inequality Report 2026 Flags Sharp Rise In India’s Wealth Gap

The World Inequality Report 2026 places India among the most unequal large economies globally, with income and wealth concentration reaching levels last seen during the colonial era. The findings indicate that recent growth has disproportionately benefited the richest groups, intensifying structural inequities across regions, genders and social categories.

Income And Wealth Concentration At Record Highs

In 2025, the richest 10% captured 58% of national income, while the top 1% alone held 22.6%, the highest share since Independence. The bottom half of the population received just 15% of total income. Wealth gaps are more pronounced: the top 10% own 65% of household assets and the top 1% control more than 40%. Comparative data shows India surpassing other unequal economies, including Brazil and the United States, on several metrics.

Historical Trends And Social Dimensions

Income distribution has returned to proportions recorded under British rule, reversing mid-twentieth-century reductions. Gender disparities remain deep, with women accounting for only 18% of labour income. Regional divides show rural bottom-50% incomes at minimal levels, while urban top-tier earners accumulate significant gains. Scheduled Castes and Scheduled Tribes continue to cluster within lower income bands, reflecting entrenched social inequities.

Drivers Behind Rising Inequality

The report attributes India’s widening gaps to technological shifts that favour skilled urban workers, concentrated corporate power, weak labour protections and a regressive tax structure. Real wages for the bottom 60% have stagnated, while profitable sectors have generated concentrated wealth. India’s tax-to-GDP ratio remains lower than many comparable economies, resulting in limited redistributive capacity.

Exam Oriented Facts

• In 2025, India’s top 10% captured 58% of national income; top 1% held 22.6%.
• Top 10% own 65% of wealth; top 1% control 40.1% of assets.
• Female labour-income share stands at 18% nationwide.
• Report recommends wealth tax, inheritance tax and universal basic services.

Policy Recommendations And Future Outlook

Proposals include progressive wealth taxation, reviving inheritance duties, super-taxing top incomes and expanding universal public services. Analysts note that India’s per-capita income has grown substantially, yet the distribution of gains remains highly skewed. The report warns that without corrective policies, inequality may intensify further by 2030, shaping economic and social outcomes for the next decade.