BS EDIT: Beyond the Numbers: Why Inequality in India Runs Deeper

By Business StandardPublished On Jul 10, 2025

A recent World Bank report shows India’s Gini index at 25.5—but this measures consumption, not income or wealth, and tells only part of the inequality story

Consumption surveys underreport rich households. Non-response and income masking distort the data, making inequality appear lower than it is

Top 10% earners made 13 times more than the bottom 10% in 2023–24. Wage gaps remain steep, especially in self-employed and informal sectors

Spatial inequality is stark. Rural MPCE in Tamil Nadu is double that of Jharkhand. Urban Telangana consumes 70% more than Bihar. Gaps run deep

Policymakers must not draw comfort from a single number. Inequality spans income, wealth, region, and opportunity—and each layer matters

Rapid growth and meaningful jobs are still key. Equity will come not from headline data, but from expanding access and reducing structural gaps