India continues to rank among the most unequal countries globally in terms of wealth distribution, with the richest 10 per cent holding nearly two-thirds of the nation’s assets, according to the latest World Inequality Report, released on Wednesday. In contrast, the poorest 50 per cent together own only 6.4 per cent of total wealth — a stark reflection of the widening economic divide.
The report, compiled by economists Lucas Chancel, Ricardo Gómez-Carrera, Rowaida Moshirf, and Thomas Piketty, reveals that the concentration of wealth is even more skewed at the very top. The top 1 per cent of the Indian population commands close to 40 per cent of all wealth in the country.
Income inequality remains similarly pronounced. The top 10 per cent account for 58 per cent of India’s national income, while the bottom half of the population receives only 15 per cent. “Inequality in India remains deeply entrenched across income, wealth and gender indicators, underlining persistent structural divisions within the economy,” the report observes.
On the basis of the report, media reports have said that over the last decade (2014–2024), the income gap between the top 10 per cent and the bottom 50 per cent has inched up from 38 per cent to 38.2 per cent, indicating that disparities have not significantly narrowed despite economic growth.
The study places India’s average annual per capita income at roughly €6,200 (in purchasing power parity terms), while average wealth per capita stands at about €28,000. It also points to a longstanding weakness: female labour force participation, stuck at 15.7 per cent, has shown no improvement in ten years.
Historically, the report notes, the distribution of income in India has shifted dramatically. In 1980, a substantial share of the population belonged to the “middle 40 per cent” income group, but today many of those individuals have slipped into the bottom 50 per cent, signalling a long-term erosion of the middle-income segment.
The global picture painted by the report is equally stark. It states that worldwide wealth has reached record levels but remains highly concentrated. Fewer than 60,000 people — just 0.001 per cent of the global population — now hold wealth equivalent to three times that owned by the poorest half of humanity.
The personal wealth share of this ultra-elite group has climbed from 3.8 per cent in 1995 to nearly 6.1 per cent in 2025, while the wealth of the bottom 50 per cent has stagnated at around 2 per cent since the early 2000s. “The consequence is a world where a minuscule minority exercises unprecedented financial influence, while billions remain deprived of even minimal economic security,” the report warns.
The document also underscores how inequality extends into environmental impact. When measuring carbon emissions linked to private capital ownership, the poorest 50 per cent of the global population contribute only 3 per cent, whereas the richest 10 per cent are responsible for 77 per cent — highlighting how capital concentration shapes climate burdens.
Also Read: Economists Suggest Wealth Tax On India’s Ultra Rich To Stem ‘Extreme Inequalities’ https://www.vibesofindia.com/economists-suggest-wealth-tax-on-indias-ultra-rich-to-stem-extreme-inequalities/
