New Delhi, : India’s widening wealth gap has been thrust into global focus with the release of the World Inequality Report 2026, authored by economists Thomas Piketty and Lucas Chancel. The report reveals that the top 10% of Indians command 58% of national income, while the bottom 50% survive on just 15%—a disparity now worse than that of Brazil or South Africa, two countries long cited for extreme inequality.
The 296-page analysis draws on economic data from 1947 to 2025, concluding that wealth concentration accelerated sharply after 2014, despite India maintaining 8% GDP growth in recent years. The top 1% holds 40% of the nation’s assets, with billionaires such as Mukesh Ambani alone accounting for 2% of total wealth—a statistic fueling public debate across social media, where #IndiaInequality has garnered over 1 million views.
The report underscores staggering regional variation. Rural Bihar remains among the poorest regions, with poverty rates near 40%, while urban centers see rapid gains tied to tech, finance, and construction. Economists warn the gap is widening further as automation threatens nearly 700 million middle-class aspirants, disproportionately affecting low-skilled jobs.
Notable contributors, including Nobel laureate Amartya Sen, sharply criticized the Goods and Services Tax (GST) for its “regressive” structure, claiming it burdens small businesses and low-income households more than wealthy firms.
Government officials defended their record. NITI Aayog’s Rajiv Kumar highlighted welfare schemes such as PM-KISAN, which provides ₹6,000 annually to 110 million farmers, arguing that India’s social-security architecture is stronger than the report suggests. In Parliament’s Winter Session, Prime Minister Narendra Modi reiterated his commitment to “Sabka Vikas” (development for all).
Nevertheless, the report recommends bold new policy interventions, including a 2% annual tax on billionaire wealth to fund education, healthcare, and digital infrastructure. According to the study, such a levy could dramatically reduce inequality over the next decade.
Globally, India now ranks among the highest in income divides, with a Gini coefficient of 0.55. Economists warn that without structural reforms—taxation, rural investment, and safety nets—the widening gulf could hinder long-term economic stability and social cohesion.
