India's wealth gap is deep, with the top 10% holding two-thirds of the country's wealth
A report examining the gap between wealth and poverty in India has revealed that economic inequality is widespread in the country. A small percentage of people own more than two-thirds of the country's wealth.
Economic inequality in India is among the highest in the world, and it has changed little in recent times. The top 10 percent of earners in the country hold approximately 58 percent of national income.
They also hold approximately 65 percent of total wealth, or more than two-thirds. The bottom 50 percent own only 6.4 percent.
According to the World Inequality Report 2026, economic inequality in India is widespread. The rich are numerous and the poor are extremely poor.
Titled "Towards Tax Justice and Wealth Redistribution in India," the report also states that the top 1 percent of the population earns 22.6 percent of national income, the highest since 1922, the year the British colonial government first began keeping records.
Current data shows that India's richest 1 percent now owns 40.1 percent of the country's total wealth, the highest since 1961.
The report, written by economists Nitin Kumar Bharti, Lucas Chancel, Thomas Piketty, and Anmol Somanchi, calls for a comprehensive wealth tax and a super tax on the very wealthy, as well as an inheritance tax, to tackle this extreme inequality.
The authors said India has become one of the most unequal countries in the world. Inequality has particularly increased since the economic liberalization of the 1990s.
There is no improvement in the condition of women.
According to the report, the average annual per capita income in the country is approximately 6,200 euros (PPP) and the average wealth is approximately 28,000 euros (PPP).
Women's labor force participation remains extremely low at 15.7% and has not improved over the past ten years. Overall, inequality in India remains deeply ingrained across income, wealth, and gender, reflecting persistent structural divisions within the economy.
Suggestions in the report
The report not only highlights the country's economic inequality but also offers suggestions to address it. It proposes a 2% annual wealth tax on net worth exceeding ₹10 crore and a 33% inheritance tax on assets exceeding ₹10 crore to generate revenue for spending on health, education, and the social sector.
Highlights of the report
- Top 10% hold 65% of total wealth
- Top 1% hold 40.1% of total wealth
- Bottom 50% – only 6.4% of total wealth
- Income share of the top 1% – 22.6% (highest since 1922)
- Billionaires' share of national income: 3% (highest in the world after Russia).