India is one of the most unequal countries in the world, according to the World Inequality Report. India stands out as a poor and very unequal country, with an affluent elite, said the report prepared by the World Inequality Lab, authored by Lucas Chancel and coordinated by economist Thomas Piketty.
The top 1 per centof India's population earned more than one-fifth (21.7 per cent) of the country's total national income in 2021, while the bottom 50 per centmade just 13.1 per cent, showed the report released on Tuesday.
In the preface of the report, Nobel laureate economists Abhijit Banerjee and Esther Duflo said that India was "among the most unequal countries" in the world.
According to the report, the top 10 per centof the population owned 57 per cent of the country's national income in 2021.
"The top 1 per centtook 38 per centof all additional wealth accumulated since the mid-1990s, with an acceleration since 2020," the report argued.
The top 1 per centof Indians now own 33% of the country's wealth compared to 31.7per centpreviously. The top 10 per cent own 64.6 per cent of the country's wealth, up from 63.9 per cent. The share of the bottom 50per centnow stands at 5.9 per cent, down from 6per centearlier. The average household wealth in India stands at Rs 9,83,010.
"The bottom 50per centown almost nothing, with an average wealth of Rs 66,280," the report said.
Globally, the poorest half of the population owns just 2 per cent of the total wealth. In contrast, the richest 10per centof the global population own 76per centof all wealth. On average, the poorest half of the population own $4,100, and the top 10per centown $771,300.
The average national income of the Indian adult population is estimated at Rs 2,04,200. The bottom 50per centearns Rs 53,610, while the top 10per centearns more than 20 times that at Rs 1,166,520.
Globally, the richest 10 per cent of the global population currently takes 52per centof global income, whereas the poorest half of the population earns 8.5 per cent of it.
On average, an individual from the top 10% of the global income distribution earns $122,100 per year, whereas an individual from the poorest half of the global income distribution makes $3,920 per year.
The report further said that India's female labour income share of 18per centin 2021 was one of the lowest in the world. The figure was significantly lower than the average in Asia, which is 21 per cent, excluding China.
There has been an increase of more than eight percentage points since 1990 in India's female labour income share.
It also highlighted that the quality of inequality data released by the Indian government has "seriously deteriorated" over the past three years.
FAQs
The top 1% earned an average of Rs. 53 lakh per year, 23 times more than the average Indian who earned Rs. 2.3 lakh, in 2022-23.
Why is there unequal distribution of wealth in India? ›
According to the paper, the Indian income tax system might be regressive when viewed from the lens of net wealth. The World Inequality Lab said factors, including a lack of education, have trapped some people in low-paid jobs and depressed the growth of the bottom 50 per cent and middle 40 per cent of Indians.
Is India the most unequal country? ›
India's income and wealth inequality have become among the highest in the world, worse than in Brazil, South Africa and the United States, reveals a new study by the World Inequality Lab (WIL).
What is the income inequality in India top 1? ›
World Inequality Lab report
The top 1 per cent earn on average Rs 5.3 million, 23 times the average Indian (Rs 0.23 million). Average incomes for the bottom 50 per cent and the middle 40 per cent stood at Rs 71,000 (0.3 times national average) and Rs 1,65,000 (0.7 times national average), respectively.
Is the top 1% rich? ›
In the U.S., it may take you $5.81 million to be in the top 1%, but it takes a minimum net worth of $30 million to be considered among the ultra-high net worth crowd. As of the end of 2023, this ultra-high net worth population is on the rise, reaching 626,000 globally, up from just over 600,000 a year earlier.
How much wealth does the 1% own? ›
For example, the top 1 percent of households hold 30.6 percent of the total wealth, according to the Federal Reserve. But just the top 0.1 percent own 14 percent of the total wealth, giving them a stunning average of more than $1.52 billion per household.
Why is inequality so high in India? ›
Moreover, in the same period, the government reduced the corporate tax rate, ostensibly to encourage businesses within the country to invest. These two factors have contributed to intensifying inequality by increasing the share of indirect taxes and decreasing the share of direct taxes in India's tax revenue kitty.
How poor is India compared to USA? ›
From a dollar-value point of view India has much more poverty than the United States. The great majority of India's people are in the world's poorer half, and about one-eighth of adults have less than $135 in total wealth [Table 3-4]. The impoverishment reaches extreme depths.
Is India a rich or poor country? ›
It is the world's fifth-largest economy by nominal GDP and the third-largest by purchasing power parity (PPP); on a per capita income basis, India ranked 136th by GDP (nominal) and 125th by GDP (PPP).
What is the rank of India in world inequality? ›
On the Gender Inequality Index (GII) 2022, India stands at rank 108 out of 193 countries with a score of 0.437. India stood at rank 122 out of 191 countries with a score of 0.490 in the Gender Inequality Index 2021. This shows a significant jump of 14 ranks on GII 2022 vis-à-vis GII 2021.
Income inequality: According to the World Inequality Report 2022, India is among the most unequal countries in the world, with the top 10% and top 1% of the population holding 57% and 22% of the total national income respectively.
What is the average income in India? ›
Average Salary of a Person in India
It includes the geographic location of your residence, age, gender, type of work and more. As per the Glassdoor data, the monthly salary provided to an Indian citizen ranges between Rs. 8,000 to Rs. 1,43,000 in 2024, with the annual average base pay amounting to around Rs. 9,45,489.
What does the top 1% mean? ›
The term “top 1%” typically refers to people among the top 1% wealthiest Americans, as measured by either annual income or net worth. The income of those in the top 1% is many multiples above that of the average American.
How much is top 2 percent income in India? ›
🔸 Top 2%: A monthly salary of ₹2 lakhs or an annual salary of ₹24 lakhs (based on data from the All India Survey on Higher Education 2019-20). 🔹 Top 1%: A monthly salary of ₹3.6 lakhs or an annual salary of ₹43.2 lakhs (based on data from the World Inequality Database).
What is India's world rank? ›
According to the World GDP Ranking 2024 list, India is the fifth largest economy in the world. Other prominent countries like the United States of America, China, Japan, Germany, etc., have a significant presence in this GDP Ranking list.
In which rank India is richest? ›
6- India: According to the IMF, India has the world's sixth-largest economy. According to the most recent IMF projections, the economy was worth $3.18 trillion in the financial period 2020-21 and is predicted to reach $5 trillion by 2027.
