A recent study by the World Inequality Lab reveals that by 2023, the richest 1% of Indians owned 40.1% of the country’s total wealth—the highest concentration since 1961. The same group earned 22.6% of national income, surpassing share levels not seen since 1922
How Wealth Is Distributed in India
- Top 1% ownership: 40.1% of total national wealth
- Top 1% income share: 22.6% of all national income
- Broader inequality: The richest 5% control nearly 60% of wealth, while the bottom 50% hold just ~3%
This represents the highest wealth concentration in over six decades and a significant shift compared to other major economies such as the U.S. and Brazil
Economic Trends Behind the Surge
Since liberalizing markets in 1992, India has seen a boom in billionaires—rising from just one billionaire in 1991 to 162 in 2022, and 271 by the end of 2023. Between 2012 and 2021, nearly 40% of new wealth went to the top 1%
Implications for Society & Policy
- Growing inequality: Income and wealth disparities are now more extreme than during British colonial rule in India
- Calls for reform: Economists like Thomas Piketty advocate for a 2% wealth tax on assets above ₹100 million (~$1.18M) and a 33% inheritance tax to reduce concentration and boost public spending (~2.7% of GDP potential revenue)
- Resistance to tax changes: India’s government abolished wealth tax in 2015 and declined reinstatement due to concerns over capital flight and middle-class burden Reuters.
Summary
India’s wealth gap has hit a historic peak—with the top 1% holding over 40% of national wealth and more than a fifth of total income. This growing concentration, coupled with a surge in billionaires, underscores persistent inequality. Reformers are calling for progressive taxation to bridge the divide as policymakers debate fiscal and social trade-offs.
