Income inequality in India

Income inequality in India refers to the unequal distribution of wealth and income among its citizens. According to the CIA World Factbook, the Gini coefficient of India, which is a measure of income distribution inequality, was 25.5 in 2022, ranking 146th out of 149, making it 4th most equal country in the world, indicating significant improvement in inequality reduction. Wealth distribution in India is uneven, but less extreme than in some developed countries. As of 2022–23, the top 1% of Indians held about 40.1% of the country’s total wealth, while the top 10% accounted for roughly 57–60% of national income. Although wealth is concentrated among the richest segments, India’s inequality is lower than in countries such as the United States, Japan, and the United Kingdom. Inequality worsened since the establishment of income tax in 1922, overtaking the British Raj's record of the share of the top 1% in national income, which was 20.7% in 1939–40.

The latest Oxfam International report titled "Survival of the Richest: The India Story" highlights significant income inequality in India. The richest 1% now own more than 40% of the country's total wealth, while the bottom 50% hold just 3%. The report also reveals a gender pay gap, with female workers earning only 63 paise for every 1 rupee earned by male workers. Additionally, healthcare costs push around 63 million Indians into poverty each year. India has 119 billionaires, whose fortunes have increased almost tenfold over the past decade. The report calls for higher taxes on the wealthy, increased spending on health and education, and measures to address gender and social inequality. According to Union Government 's own submission to Supreme Court of India, widespread hunger has caused 65% of deaths of children under the age of 5 in 2022.

According to a 2021 report by the Pew Research Center, India has roughly 1.2 billion lower-income individuals, 66 million middle-income individuals, 16 million upper-middle-income individuals, and barely 2 million in the high-income group. According to The Economist, 78 million of India's population are considered middle class as of 2017, if defined using the cutoff of those making more than $10 per day, a standard used by the India's National Council of Applied Economic Research.