Income and Wealth Inequality: Does Indian is Really Growing Nation for the Last 10 Years?
India’s Economic Growth vs. Income and Wealth Inequality (2015–2025)
Has India truly grown as a nation in the last decade? The answer depends on which aspect of growth is considered. While India has experienced significant economic expansion, the benefits of this growth have been distributed unevenly, leading to stark income and wealth inequality.
Economic Growth: The Big Picture
India has seen substantial GDP growth and a rise in average incomes over the last ten years, with the annual income of an average Indian reaching ₹2.35 lakh in 2022–23.
There have been improvements in some social indicators and economic opportunities, especially in urban areas.
Income and Wealth Inequality: The Hard Reality
Wealth Concentration: As of 2025, the richest 10% control 57–65% of India’s wealth, while the poorest 50% own just 6.4–13%. The top 1% alone own over 40% of the nation’s wealth, a historically unprecedented level.
Income Distribution: The top 1% of Indians earn 22.6% of total income, while the bottom 50% earn just 15%. The top 0.1% have seen their share of wealth rise dramatically, capturing 29% of total wealth by 2023.
Stagnant or Worsening Inequality: Inequality, which had declined after independence, began rising from the 1980s and has accelerated since the early 2000s. The last decade has seen a particularly sharp increase in top-end wealth and income concentration.
Gini Index Trends: The Gini index (a measure of inequality) worsened from 0.367 in 2015–16 to 0.506 by 2021 (partly due to COVID-19 disruptions), but improved to 0.410 in 2022–23, suggesting some post-pandemic recovery. However, this still reflects high inequality by global standards.
Structural and Social Implications
Limited Impact of Tax Reforms: Recent tax rebates and deductions have not significantly reduced inequality, as wealth and income remain concentrated at the top.
Social Disparities: The bottom half of the population faces challenges such as low earnings, limited asset ownership, and vulnerability to health and economic shocks.
Policy Recommendations: Experts and organizations like Oxfam and the World Inequality Lab advocate for higher taxes on the ultra-rich, increased public investment in health and education, and better data transparency to address inequality.
Is India a “Growing Nation”?
Yes, in terms of aggregate economic metrics: GDP, average income, and the number of billionaires have all increased.
But, growth is highly unequal: The majority of gains have accrued to the top 1–10%, while the bottom 50% have seen relatively little improvement in wealth or income.
Conclusion: India is growing, but not inclusively. The widening gap between rich and poor raises concerns about the sustainability and fairness of this growth trajectory.
“By 2022-23, top 1% income and wealth shares (22.6% and 40.1%) are at their highest historical levels and India’s top 1% income share is among the very highest in the world.”
Income and Wealth Distribution in India (2023–2025)
| Group | Share of Income | Share of Wealth |
|---|---|---|
| Top 1% | 22.6% | 40.1%+ |
| Top 10% | 57.7% | 57–65% |
| Bottom 50% | 15% | 6.4–13% |
India’s economic growth over the last decade is real, but its benefits have been highly concentrated among the wealthiest, making it one of the most unequal societies globally. Without targeted policy interventions, this trend is likely to persist.
