Winning Bizness Desk

Mumbai.India’s income and wealth inequality has climbed to a record high, with the richest sections cornering a disproportionate share of national resources, according to the World Inequality Report 2026 released on Wednesday. The report shows that the top 10 percent of Indians now earn 58 percent of the country’s total income, while the bottom 50 percent together receive only 15 percent. The findings underline a widening gap between the rich and the poor, even as average incomes rise.

Income concentration among richest Indians

The report highlights that income inequality in India has steadily increased in recent years. In 2021, the top 10 percent held 57 percent of national income, which has now risen to 58 percent. India’s average annual per capita income, measured in purchasing power parity terms, stands at Rs 6.56 lakh. However, this average masks sharp disparities across income groups, with gains largely accruing to the richest households.

Wealth gap sharper than income divide

Wealth inequality is even more pronounced than income disparity. The top 10 percent of Indians own 65 percent of the country’s total wealth, while the top 1 percent alone controls close to 40 percent. Average per capita wealth in India is estimated at Rs 29.62 lakh, but the bottom 50 percent hold an average wealth of only Rs 6.88 lakh per person.

Key wealth figures from the report include:

• The average wealth of the top 10 percent stands at Rs 10.58 crore per person
• The top 0.001 percent, around 56,000 individuals, own more than 10 million euros each, roughly Rs 1,058 crore
• Wealth inequality in India exceeds income inequality by a wide margin

Women remain largely excluded from workforce

The report also flags persistent gender inequality in employment. India’s female labour participation rate is just 15.7 percent, meaning only about 16 women are employed for every 100 working men. This figure has remained largely unchanged over the past decade. At the global level, women earn only 25 percent of total labour income, reflecting deep-rooted structural barriers in labour markets.

India among world’s most unequal countries

Globally, inequality remains high, with the richest 10 percent owning 75 percent of total wealth, while the bottom half holds just 2 percent. In terms of income, the top 10 percent worldwide take 53 percent, leaving only 8 percent for the bottom 50 percent. India ranks among the most unequal nations, second only to South Africa, where the top 10 percent earn 66 percent of income and own 85 percent of wealth.

Global comparison and long-term trends

The report notes that countries like Brazil and Mexico also show high inequality, with the top 10 percent earning around 60 percent of income. In contrast, European nations such as Sweden and Norway offer a more balanced distribution, where the bottom 50 percent receive nearly 25 percent of income. In 1980, a large share of India’s population fell within the global middle 40 percent, but by 2025, most have slipped into the bottom 50 percent category, while China has moved upward.

Additional global indicators underline the imbalance:

• Wealth in North America and Oceania is 338 percent above the global average
• South Asia, including India, remains far below the global wealth average
• The top 10 percent are responsible for 77 percent of global carbon emissions
• The bottom 50 percent contribute just 3 percent of emissions

The report has been prepared by over 200 researchers, with editors including Lucas Chancel, Ricardo Gomez Carreras, Rowaida Moshrif and Thomas Piketty, using data from 180 countries, offering a stark picture of inequality in India and across the world.