Top 10% in India earn up to 34 times more than bottom half: Inequality report

India is ranked among countries with the highest income gaps, with the top 10 per cent earning between 28 and 34 times the income of the bottom half, according to the World Inequality Report 2026. The findings place India in a region marked by both low average incomes and high internal inequality.

The report, produced by researchers associated with the World Inequality Lab, tracks global and national trends in income, wealth, education spending, gender disparities, tax structures and climate vulnerability. It shows that India mirrors broader regional patterns in South and Southeast Asia, where the top 10 per cent hold a dominant share of income and wealth, while the bottom 50 per cent retain only a small portion.

Globally, the study finds that wealth concentration remains extreme. The richest 10 per cent own 75 per cent of all personal wealth, while the poorest half holds just 2 per cent. India’s country profile reflects similar patterns of concentration, with limited gains for the lower half of the population over time.

One of the central themes of the report is the gap in human capital investment across regions. South and Southeast Asia records average public education spending of €593 per school-age individual in 2025. This is well below the global average and substantially lower than Europe, which spends €7,433, and North America and Oceania, which spend €9,025. The report states that the education spending gap is more than 1 to 40, exceeding the differences seen in per-capita GDP, and highlights how unequal investment shapes opportunities across generations.

Gender inequality remains another persistent divide. In South and Southeast Asia, women earn only 20 per cent of total labour income. At the global level, the study finds that women work more hours per week than men when unpaid domestic and care work is included. Yet when these hours are factored in, women earn only 32 per cent of men’s hourly income. According to the report, this restricts economic mobility and slows wealth accumulation for women.

Climate inequality is also highlighted. The poorest 50 per cent of the global population account for only 10 per cent of consumption-based emissions, while the top 10 per cent contribute 47 per cent. Despite their low contribution, the bottom half bears about 75 per cent of global climate-driven income losses relative to income. India, situated in a low per-capita emission region, therefore faces higher vulnerability to climate impacts.

On redistribution, the report notes that while regions such as Europe and North America reduce inequality significantly through taxes and transfers, the redistributive effect is limited in South and Southeast Asia. The study also presents examples from other countries showing that the ultra-rich often face lower effective income tax rates than middle-income groups, indicating structural challenges in progressive taxation.

The report concludes that inequality reflects policy choices rather than unavoidable economic outcomes. India’s position in a region with low average incomes, limited human capital investment and persistent gaps between the top and bottom underscores the structural nature of the issue. It adds that reductions in inequality require stronger social investment, progressive taxation and reforms in climate and financial systems.