World Inequality Report 2026: India’s Rising Wealth Gap
India's top 10% hold 65% of wealth while bottom 50% earn 15% income. Understand World Inequality Report 2026 findings on India's rising wealth gap and policy solutions.
UPSC Prelims
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Gajendra Singh Godara
Dec 12, 2025
8
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The World Inequality Report 2026, released by the World Inequality Lab, reveals alarming disparities globally and in India. In India, the top 10% earn 58% of national income while the bottom 50% earn only 15%.
The report highlights widening income, wealth, gender, and climate inequalities, demanding urgent policy intervention for inclusive growth and social justice.
This is the 3rd edition of World Inequality Report after 2018 and 2022.
The World Inequality Report 2026 reveals that global inequality has reached historic levels. This report outlines how wealth concentration, gender gaps, and climate responsibility are skewed heavily toward the very top.
Here is what you need to know about the report and how India stands in the global ranking.
The World Inequality Report released by the World Inequality Lab provides the most up-to-date data on global economic disparities.
Leading economists like Lucas Chancel, Ricardo Gómez-Carrera, Rowaida Moshrif, and Thomas Piketty spearheaded this research. It is the third major edition of the report, following the 2018 and 2022 releases.
The World Inequality Report published by this team serves a specific purpose. It aims to inform public debate and push for policies that support inclusive growth and social justice.
The report paints a worrying picture of how wealth is distributed worldwide.
The Ultra-Rich Get Richer: The top 0.001% (about 60,000 people) own three times more wealth than the poorest 50% of humanity combined. Their share of wealth rose from 4% in 1995 to 6% in 2025.
Wealth Concentration: The global top 10% own 75% of the world's wealth. In contrast, the bottom 50% own just 2%.
Top 1% Control: The top 1% alone control 37% of global wealth. This is eighteen times more than the wealth of the entire bottom half of the global population.
The data for India is particularly alarming. The World Inequality Report India section highlights deep structural divides. India has lost ground globally. In 1980, many Indians were in the "middle 40%" of global distribution. Today, almost all are in the bottom 50%.
Income Inequality in India
Top Earners Dominate: The top 10% of earners capture 58% of the national income.
The Bottom Struggles: The bottom 50% receive only 15% of the national income.
Comparison: This gap has widened since the 2022 report, where the top 10% held 57% and the bottom 50% held 13%.
Average Income: The average annual income per capita in India is around €6,200 (Purchasing Power Parity).
Wealth Inequality in India
Extreme Concentration: The richest 10% hold 65% of India's total wealth.
Top 1% Share: The top 1% capture 23% of national income while holding 40% of total wealth, revealing extreme wealth concentration.
Average Wealth: The average wealth stands at approximately €28,000.
The report also sheds light on the economic status of women.
India's Participation: Female labor force participation in India remains extremely low at 15.7%.
Global Pay Gap: Globally, women earn only 61% of what men earn per working hour. If you include unpaid work, this figure drops to 32%.
Labor Income Share: Women capture just 25% of global labor income. This share has barely changed since 1990.
Regional Data: In South and Southeast Asia, women's share of labor income is only 20%.
Wealth drives carbon emissions. The report links private capital ownership directly to climate damage.
The Polluters: The top 10% account for 77% of emissions linked to private capital.
The Disparity: The wealthiest 1% create 41% of these emissions. This is nearly double the amount produced by the entire bottom 90% combined.
The Bottom 50%: The poorest half of the population contributes only 3% of these emissions.
Inequality across income, wealth, and gender dimensions reveals deep structural divides within economies that demand urgent attention:
Persistent Gender Disparities: Women earn only 61% of men's hourly income in paid work, dropping to just 32% when unpaid domestic and care labor is included, restricting career advancement and wealth accumulation.
Ultra-Wealth Concentration: The richest increasingly control disproportionate wealth while effective tax rates for billionaires and centi-millionaires remain lower than middle-income earners due to tax loopholes.
Regressive Tax Systems: Weak taxation frameworks favor the ultra-rich with preferential capital income treatment, while ordinary workers face higher tax burdens on labor income.
Unequal Global Financial Architecture: Developing nations face expensive debts and continuous income outflows, constraining investment in education, healthcare, and infrastructure.
Unequal Access to Opportunities: Disparities in education, jobs, and services fragment social cohesion, limiting political representation for working-class voters and entrenching inequality.
The report does not just list problems. It offers concrete solutions to fix these divides.
Progressive Taxation: Governments must tax the ultra-rich more effectively. Billionaires currently pay lower effective tax rates than many average citizens. A wealth tax and closing loopholes are essential steps.
Invest in People: Public investment in free, high-quality education and universal healthcare will reduce early-life disparities.
Social Protection: Expanding cash transfers, pensions, and unemployment benefits can support vulnerable households directly.
Climate Justice: High emitters must face accountability. We need a framework that shares emissions responsibility equitably and incentivizes green technology.
Gender Equity: Societies must recognize and reduce unpaid care work through public services. Increasing female labor participation through skilling and childcare is vital.
Note: *Source of all Chart Images is "wir2026.wid.world"
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