Source: IE
Context:
The World Inequality Report 2026, released by the World Inequality Lab and edited by Lucas Chancel, Ricardo Gómez-Carrera, Rowaida Moshrif and Thomas Piketty, highlights worsening income, wealth, gender and climate inequality across the world.
The report draws on research by over 200 global scholars and follows earlier editions published in 2018 and 2022.
Income Inequality in India
- Top 10% earners capture 58% of national income
- Bottom 50% receive only 15% of national income
- India ranks among the most unequal countries globally in income distribution
Comparison with 2022 report
- Top 10% share (2021): 57%
- Bottom 50% share (2021): 13%
- Indicates persistent and worsening inequality
Wealth Inequality in India
- Top 10% own ~65% of total wealth
- Top 1% alone hold ~40% of national wealth
- Wealth inequality is sharper than income inequality
Average levels (PPP terms)
- Average annual income per capita: €6,200
- Average wealth per capita: €28,000
Gender Inequality in India
- Female labour force participation: only 15.7%
- No meaningful improvement over the past decade
- Reflects deep-rooted structural and social constraints
Global Inequality
Extreme Wealth Concentration
- Top 0.001% (fewer than 60,000 people) own 3 times more wealth than the bottom 50% of humanity
- Their wealth share rose from ~4% (1995) to over 6% today
- Top 1% control 37% of global wealth
- Top one-in-a-million hold 3% of global wealth, more than the entire bottom half
Global Distribution of Wealth
- Top 10% own 75% of global wealth
- Bottom 50% own just 2%
Shifting Global Income Positions (1980–2025)
- China: Significant upward mobility; large share now in middle 40%
- India: Relative decline
- In 1980, more Indians were in the global middle 40%
- Today, almost the entire population lies in the global bottom 50%
- Sub-Saharan Africa: Remains largely in the lower half
Gender Inequality (Global)
- Women earn 61% of men’s wages per hour (excluding unpaid work)
- Including unpaid labour, earnings fall to 32%
- Women receive only ~25% of global labour income
- Regional shares:
- Middle East & North Africa: 16%
- South & Southeast Asia: 20%
- Sub-Saharan Africa: 28%
- East Asia: 34%
- Europe/North America/Oceania: ~40%
Climate Inequality
- Bottom 50% account for 3% of emissions linked to private capital ownership
- Top 10% account for 77%
- Top 1% alone generate 41%, nearly double the bottom 90%
- Highlights strong linkage between wealth concentration and climate damage
Policy Concerns Highlighted
Failure of Tax Systems
- Effective tax rates rise for most people but fall sharply for billionaires
- Ultra-rich often pay proportionally less tax than middle-income households
- Results in reduced public spending on:
- Education
- Healthcare
- Climate action
Recommended Policy Responses
- Progressive taxation targeting ultra-rich
- Strong public investment in:
- Education
- Universal healthcare
- Nutrition and childcare
- Redistributive measures:
- Cash transfers
- Pensions
- Social security and targeted welfare
