Lok Sabha Question No. 323 (UNSTARRED), answered on 2026-02-02
Subject: Rising Income and Wealth Inequality in the Country
Ministry: FINANCE
Asked by: Shri Vijayakumar Alias Vijay Vasanth

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF ECONOMIC AFFAIRS

## LOK SABHA UNSTARRED QUESTION NO. 323 TO BE ANSWERED ON 02.02.2026

## RISING INCOME AND WEALTH INEQUALITY IN THE COUNTRY

323. Shri Vijayakumar Alias Vijay Vasanth:

Will the Minister of FINANCE be pleased to state:

- (a) whether it is a fact that the Government tax policies continue to favour the richest, while the poor and middle class face stagnant incomes and rising costs of living;
- (b) if so, the manner in which the Government justify the said policies;
- (c) the measures likely to be taken by the Government to ensure economic justice for women in the country;
- (d) whether the Government is aware that globally the elite control disproportionate wealth, yet India's top  1  per  cent  wealth  share  has  risen  even  faster  and  the  manner  in  which  the  Government  plans  to prevent India from becoming a society of extreme privilege;
- (e)  whether  the  Government  is  aware  that  the  report  highlights  the  link  between  private  capital concentration and rising inequality  and the manner in which the Government regulates corporate and financial elites to prevent exploitation of workers;
- (f)  whether  the  Government  has  assessed  the  widening  regional  disparities,  particularly  the  growing rural-urban income gap and the marginalization of rural and disadvantaged communities and if so, the targeted schemes being implemented to address these disparities; and
- (g) whether the Government has taken note of the World Inequality Report's warning that unchecked inequality  undermines  social  cohesion,  if  so,  the  steps  proposed  to  be  taken  by  the  Government  to prevent rising social unrest due to wealth concentration?

## ANSWER MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI PANKAJ CHAUDHARY)

(a) & (b): No, Sir. The tax structure in India is progressive, with higher-income groups contributing a larger  share  of  direct  taxes,  while  economically  weaker  sections  receive  net  fiscal  support  through subsidies and welfare schemes. Concerns relating to the cost of living are addressed through targeted interventions  in  food  security,  fuel  support,  housing,  and  health,  with  policy  emphasis  placed  on inclusive schemes such as Direct Benefit Transfers.

(c):  The Union Budget 2025-26 includes a Gender Budget Statement with allocations across multiple Ministries  and  Departments  through  schemes  such  as  Saksham  Anganwadi,  Mission  Shakti,  and programmes supporting women entrepreneurs and women's housing. Measures for economic justice for women include higher budgetary allocations for women-centric schemes, financial inclusion under the Pradhan Mantri Jan Dhan Yojana (PMJDY), nutrition and health programmes, maternity benefits, skill development initiatives, and support for women's self-employment and Self-Help Groups (SHGs).

(d)  to  (g):  In  India,  the  data  on  class  distribution  of  income  is  not  compiled  centrally.  However, household consumption expenditure data collected by the National Statistical Office (NSO) could be used as a proxy to capture the economic disparity in terms of consumption expenditure. According  to  the  latest  Household  Consumption  Expenditure  Survey  2023-24,  the  Gini coefficient  for  rural  and  urban  areas  is  0.237  and  0.284,  respectively,  down  from  0.266  and  0.314  in 2022-23.  This  shows  that  the  rural-urban  gap  is  narrowing.  This  has  been  possible  due  to  a  multipronged  approach  followed  by  the  Government  that  addresses  economic  inequality,  promotes  social mobility, and ensures fair economic participation.

The  Government  addresses  rising  wealth  concentration  through  a  progressive  income  tax  structure, higher surcharges on high-income groups, and increased spending on food, health, education, housing, and social security.

The Government has been prioritising employment generation and improving employability. The annual periodic  labour  force  survey  (PLFS)  report  shows  that  labour  markets  have  recovered  beyond  preCOVID levels in both urban and rural areas. The unemployment rate for individuals aged 15 and above has decreased from 5.8% in 2018-19 to 3.2% in 2023-24.

Further the Government has been implementing various targeted programmes such as Pradhan Mantri Awas Yojana, Mahatma Gandhi National Rural Employment Guarantee Act (Replaced with the Viksit Bharat  -  Guarantee  for  Rozgar  and  Ajeevika  Mission  (Gramin)  Act,  2025),  Deendayal  Antyodaya Yojana - National Rural Livelihoods Mission, National Social Assistance Programme, Pradhan Mantri Jan-Dhan Yojana, Deen Dayal Upadhyaya Grameen Kaushalya Yojana, Pradhan Mantri Suraksha Bima Yojana,  Pradhan  Mantri  Jeevan  Jyoti  Bima  Yojana,  Atal  Pension  Yojana,  Pradhan  Mantri  Mudra Yojana,  Stand  Up  India  Scheme,  Umbrella  Programmes  for  Development  of  Minorities  and  Other Vulnerable  Groups,  Pradhan  Mantri  Kisan  Samman  Nidhi  (PM-KISAN),  the  Aspirational  Districts Programme,  and  rural  health,  nutrition,  and  skill-development  initiatives  etc.  It  is  also  implementing various programmes, including Jal Jeevan Mission, Swachh Bharat Abhiyan, PM Ujjwala Yojana, PM Saubhagya Yojana, Ayushman Bharat, etc. to bring about overall improvement in the quality of life of the people through universal access to basic amenities.

The Government closely monitors global inequality reports, including the World Inequality Report. As mentioned  in  the  latest  report, (National  Multidimensional  Poverty  Index:  A Progress  Review  2023, released by NITI Aayog, the proportion of the population in multidimensional poverty declined from 24.85% to 14.96% between 2015-16 and 2019-21, indicating that about 13.5 crore people have escaped poverty during the period. Further, as per the discussion paper (Multidimensional Poverty in India since 2005-06, published  by  NITI  Aayog,  multidimensional  poverty  in  India  is  estimated  to  have  declined from 29.17% in 2013-14 to 11.28% in 2022-23 indicating that 24.82 crore people have escaped poverty during this period.

*****