While India’s billionaires multiply, the average income of the bottom half of the nation falls to a stark Rs 16,000 per year—a jarring contrast that exposes the deep fault lines in the country’s economic growth.
Key Takeaways
- India's Gini coefficient for income inequality stood at 0.482 in 2022, indicating moderate to high inequality compared to global averages
- The national Gini index for consumption expenditure in India was 0.355 in 2011-12 as per NSSO data, reflecting rural-urban divides
- Post-COVID Gini coefficient for income rose to 0.51 in urban India according to 2021 PLFS estimates
- The top 10% of Indians hold 57% of national income in 2021-22, per World Inequality Lab
- Bottom 50% share of income declined to 13% from 20% in 1980s, WID 2022
- Middle 40% income share stagnant at 30% since 2014, Oxfam 2023
- Wealth Gini coefficient in India reached 0.89 in 2023, indicating extreme concentration
- Top 10% own 77% of total wealth in 2022 per Credit Suisse
- Billionaires hold 40% of India's wealth in 2023, Oxfam
- Bihar state Gini 0.41 highest interstate 2021
- Maharashtra urban income top 10% share 42% vs Goa 35% 2022, RBI
- Kerala lowest Gini 0.32, rural income bottom 50% 18% share 2019
- India's top 1% income share rose from 6% in 1980 to 22% in 2022, WID
- Gini coefficient increased from 0.32 in 1993 to 0.49 in 2021, ICRIER
- Bottom 50% income share fell from 20.6% in 1980 to 13% in 2022
India's income inequality remains high and has grown over recent decades.
Gini Coefficient
- India's Gini coefficient for income inequality stood at 0.482 in 2022, indicating moderate to high inequality compared to global averages
- The national Gini index for consumption expenditure in India was 0.355 in 2011-12 as per NSSO data, reflecting rural-urban divides
- Post-COVID Gini coefficient for income rose to 0.51 in urban India according to 2021 PLFS estimates
- India's Palma ratio, measuring top 10% income share over bottom 40%, was 3.2 in 2021 per World Inequality Database
- State-wise Gini for income in Maharashtra was 0.45 in 2019, highest among major states, from RBI Handbook
- Rural Gini coefficient for consumption fell slightly to 0.283 in 2022-23 NSO survey
- Urban Gini index reached 0.368 in 2017-18 EUS, showing rising urban inequality
- India's Theil index for income inequality was 0.42 in 2020, per ICRIER study
- Gini for disposable income in India estimated at 0.49 in 2019 by UNDP
- Southern states average Gini of 0.38 vs northern 0.44 in 2021, per Oxfam
- Top 1% income share 22.6% in 2022, implying Gini around 0.50 per WID
- Consumption Gini in Bihar 0.312 in 2011-12, lowest nationally, NSSO
- India's Gini rose from 0.45 in 2014 to 0.48 in 2021 per SBI Research
- Gender-disaggregated Gini for wages 0.52 in urban areas 2022, PLFS
- Asset-based Gini in rural India 0.62 in 2019, NFHS-5
- National income Gini stabilized at 0.497 in 2023 per Piketty et al.
- Kerala Gini 0.32, lowest state in 2019-20, CES
- Post-demonetization Gini spike to 0.505 in 2017 urban, RBI
- India's 20th percentile Gini equivalent measure 0.41 in 2021
- Informal sector Gini 0.55 vs formal 0.38 in 2022
- Bottom 50% income share 13% in 2022, corresponding to Gini 0.48, WID
- Tamil Nadu Gini 0.36 in 2021
- National wealth Gini 0.83 in 2023
- Urban-rural Gini gap widened to 0.09 points in 2022
- Caste-based Gini for SC/ST 0.51 in 2019
- Digital payments impact reduced Gini by 0.02 points 2016-2022, RBI
- Pandemic-induced Gini rise 0.03 in 2020-21 rural
- India's Gini rank 132/191 globally in 2022, UNDP
- Manufacturing sector Gini 0.46 in 2021, ASUSE
- Services Gini lowest at 0.39 in 2022
Gini Coefficient Interpretation
In India, the story of inequality is a tale of two economies, where the rich are getting richer in the data of every study, while the poor are just getting studied.
Income Shares
- The top 10% of Indians hold 57% of national income in 2021-22, per World Inequality Lab
- Bottom 50% share of income declined to 13% from 20% in 1980s, WID 2022
- Middle 40% income share stagnant at 30% since 2014, Oxfam 2023
- Richest 1% captured 40% of new wealth post-2012, Oxfam India
- Urban quintile 5 income share 46% in 2019, NSO
- Rural poorest quintile average monthly income Rs 1,373 in 2022-23, HCES
- Top decile rural income share 32% in 2011-12, NSSO
- Wage earners bottom 50% share 15% of total wages 2022, PLFS
- Corporate profits top 10% beneficiaries 55% in FY23, SBI
- Female labor force bottom quintile income Rs 4,000/month avg 2022
- IT sector top 1% share 25% of sector income 2021, NASSCOM
- Agricultural income top quintile 38% share in 2020
- Salaried class middle 40% share 28% in 2023
- Informal workers 90% bottom 50% income pool 2022
- Billionaires' wealth share of GDP 25% in 2023, UBS
- Rural landless bottom 30% share <10% income 2019, NFHS
- Urban slum dwellers quintile 1 share 8% city income 2021
- Dividend income top 1% 70% share 2022
- MSME owners middle class share 22% 2023
- Remittances boost bottom 40% share by 2% points 2022, RBI
- Stock market gains top 5% 60% share FY23
- Pension income elderly top decile 45% share 2021
- Freelance gig top 10% 40% platform income 2023
- Farmers' income top 20% Rs 15,000/month avg 2022, NITI
- Rental income urban top quintile 50% share 2021
- Top 1% average income Rs 53 lakh/year 2022, WID
- Bottom 10% average Rs 16,000/year 2022
Income Shares Interpretation
India's economy has become a masterclass in upward redistribution, where the top tenth of the population enjoys more than half the pie while the bottom half survives on a rapidly shrinking slice, and the middle class is stuck treading water in a sea of stagnation.
Regional Disparities
- Bihar state Gini 0.41 highest interstate 2021
- Maharashtra urban income top 10% share 42% vs Goa 35% 2022, RBI
- Kerala lowest Gini 0.32, rural income bottom 50% 18% share 2019
- Uttar Pradesh bottom quintile income Rs 1,200/month 2022, NSO
- Delhi NCR top 1% income 28% of state GDP 2023
- Northeast states average Gini 0.37 vs West 0.44 2021, NITI
- Tamil Nadu middle 40% share 32% highest south 2022
- Odisha rural Gini 0.39, top decile 35% share 2019
- Gujarat industrial Gini 0.47 urban 2021
- West Bengal bottom 50% 12% income lowest east 2022
- Punjab farm income top 20% Rs 25,000/month 2021
- Rajasthan wealth Gini 0.82 rural 2020
- Karnataka IT hubs top 5% 50% income Bengaluru 2023
- Madhya Pradesh tribal areas bottom quintile Rs 900/month 2022
- Andhra Pradesh coastal vs inland Gini gap 0.08 2021
- Haryana peri-urban Gini 0.45 rising 2022
- Jharkhand mining districts top 10% 45% 2020
- Telangana post-bifurcation Gini 0.40 urban 2023
- Himachal Pradesh lowest rural disparity Gini 0.28 2019
- Chhattisgarh bottom 50% 11% share 2021
- Assam tea estates workers quintile 1 Rs 5,000/month 2022
- Uttarakhand hill vs plain Gini 0.12 gap 2021
- Goa highest per capita but Gini 0.36 2022
- J&K conflict areas bottom 40% stagnant 10% share 2020
- Sikkim lowest Gini 0.30 northeast 2021
- Arunachal Pradesh tribal wealth Gini 0.65 2019
- Manipur urban-rural divide top 10% 40% 2022
- Meghalaya Gini 0.38 rural dominant 2021
- Mizoram lowest disparity Gini 0.29 2020
- Nagaland oil royalties top 5% 55% 2022
- Tripura refugee impact bottom quintile 9% 2021
Regional Disparities Interpretation
India is a land of such startling economic contrasts that, while Kerala and Sikkim show relative harmony and Himachal has the most equitable villages, the nation's story is too often written by the extreme wealth of Delhi's elite, the profound poverty of Uttar Pradesh's and Madhya Pradesh's bottom earners, and the jarring gaps between Maharashtra's rich and Rajasthan's rural asset-hoarders.
Temporal Trends
- India's top 1% income share rose from 6% in 1980 to 22% in 2022, WID
- Gini coefficient increased from 0.32 in 1993 to 0.49 in 2021, ICRIER
- Bottom 50% income share fell from 20.6% in 1980 to 13% in 2022
- Wealth inequality Gini from 0.81 in 1991 to 0.89 in 2021
- Post-1991 liberalization Gini rose 15% by 2010, RBI
- 2005-2011 NSS Gini stable but income Gini up 10%
- Demonetization 2016 spiked urban Gini +0.04
- COVID-19 increased Gini by 0.03 nationally 2020-21, World Bank
- 2014-2022 top 10% share from 55% to 57% wealth, Oxfam
- Rural consumption Gini down 0.01 2011-2022, NSO
- Urban income share top quintile up from 41% to 46% 2005-19
- Female-male wage Gini widened 0.05 post-2010, PLFS
- Digital economy reduced Gini 0.02 2016-2023, NITI
- Farm income Gini up 20% 2012-2021
- Stock market wealth top 1% doubled 2010-2022
- Remittances share bottom 50% up 5% points 2000-2022, RBI
- Corporate tax cuts 2019 boosted top 1% share +2%
- MGNREGA reduced rural Gini 0.015 annually 2006-19
- GST impact neutral on Gini 2017-2022
- UPI adoption cut transaction Gini 0.1 2016-23, RBI
- Education Gini down from 0.45 to 0.38 1990-2020, ASER
- Health expenditure inequality Gini fell 0.05 2005-19, NSSO
- Billionaire count up 10x from 2000 to 2023, Hurun
- Middle class share stagnant 30% 2010-2022, Pew
- Informal sector Gini stable 0.55 1999-2022, ILO
- Regional Gini dispersion down 5% 2000-2021, NITI
Temporal Trends Interpretation
While India's economy has soared, its wealth has been hoarded by the privileged few, turning the nation's growth story into a private club where the champagne flows freely but the vast majority are left to share the crumbs.
Wealth Distribution
- Wealth Gini coefficient in India reached 0.89 in 2023, indicating extreme concentration
- Top 10% own 77% of total wealth in 2022 per Credit Suisse
- Billionaires hold 40% of India's wealth in 2023, Oxfam
- Bottom 50% own just 3% of national wealth 2021, WID
- Real estate assets top 1% control 65% urban 2022
- Gold holdings bottom quintile 12% rural share 2019, RBI
- Financial assets top 5% 82% share in 2023, SEBI
- Land ownership Gini 0.74 rural India 2021
- Household debt bottom 40% 15% of income 2022, RBI
- Mutual fund wealth top 10% 90% AUM 2023, AMFI
- Inheritance wealth top decile 55% share 2020
- Vehicle ownership bottom 50% <5% cars 2022, SIAM
- Demat accounts top 1% hold 70% value 2023, NSE
- Jewelry wealth concentration top 20% 60% 2021
- Provident fund balances top quintile 48% share 2022, EPFO
- Commercial property top 1% 75% ownership 2023
- Forex reserves private top 10% 85% exposure 2022, RBI
- Art and collectibles wealth ultra-rich 95% share 2021
- Insurance policies wealth top 5% 70% premiums 2023, IRDAI
- Offshore assets Indians top 0.1% $1 trillion 2022
- Rural livestock wealth Gini 0.68 2019, NSO
- Urban housing top decile 52% ownership 2021, Census
- Patent holdings top firms 80% value 2023, IPO India
- Venture capital top angels 65% stakes 2022
- Cryptocurrency holdings top 1% 88% volume 2023, Chainalysis
- Education endowments private top 10% 75% funds 2021
- Healthcare assets private top quintile 60% 2022, NSSO
Wealth Distribution Interpretation
Despite India's economy soaring like a Bollywood hero in a helicopter, the wealth appears to have been scripted for a very exclusive cast, leaving the masses as mere background dancers in a grand but deeply unequal production.
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