SRINAGAR: The richest 1 per cent of Indians hold a staggering 33 per cent of the nation’s wealth, according to data cited by the Government in Parliament on Monday, even as it outlined an array of welfare, employment, and tax measures aimed at narrowing the income and opportunity gap.
Replying to a question in the Rajya Sabha on wealth inequality, Minister of State for Planning Rao Inderjit Singh referred to the World Inequality Report 2022, which paints a stark picture of India’s wealth distribution. The bottom half of the population controls just 5.9 per cent of total wealth, the middle 40 per cent holds 29.5 per cent, while the top 10 per cent commands 64.6 per cent.
Singh told the House that India does not centrally compile data on wealth and income inequality, relying instead on household consumer expenditure surveys and national accounts statistics as proxies. He said the Government’s policy focus is on “inclusive growth” under the slogan Sabka Saath, Sabka Vikas, and on “reducing poverty and inequality, providing social security, and improving quality of life” for vulnerable communities.
A raft of targeted programmes, from the rural jobs guarantee scheme (MGNREGA) and rural livelihoods mission to PM-Kisan cash transfers, crop insurance payouts, and subsidies for fertilisers, was listed as part of this effort. Flagship infrastructure and basic amenities schemes such as Jal Jeevan Mission, Swachh Bharat Abhiyan, Ujjwala, Saubhagya, Ayushman Bharat, and Jan-Dhan were also highlighted.
Employment creation has been a key pillar of the Government’s inequality response. Citing the annual Periodic Labour Force Survey, Singh said unemployment for people aged 15 and above had fallen from 5.8 per cent in 2018–19 to 3.2 per cent in 2023–24, with labour markets recovering beyond pre-COVID levels. Skill-building drives, including the Skill India Mission and the PM Vishwakarma scheme for artisans, are intended to boost earning capacity.
On taxation, the Minister stressed that India’s direct tax system is “progressive” and imposes surcharges on very high incomes. The Union Budget 2025–26 proposes to exempt income up to Rs 12 lakh from tax under the new regime and revise tax slabs to leave more money in the hands of the middle class. Other Budget measures include expanded pension schemes, affordable housing support, public health initiatives, and credit support for entrepreneurs.
While the wealth gap remains wide, Singh argued that sustained economic growth, targeted welfare, and a fair tax structure form the Government’s multi-pronged approach to ensuring “fair economic participation” across society.
