India’s economic rise has been impressive but growth could stall if we let deep disparities persist

India stands at a crossroads as one of the fastest-growing large economies in the world, yet it also has among the highest levels of inequality, with little movement seen in recent years. On paper, India’s growth story remains strong even as global conditions are uncertain. According to the latest national accounts with a revised base year of 2022-23, India’s real gross domestic product (GDP) grew by 7.2% in 2023-24 and 7.1% in 2024-25.

The economy is estimated to grow roughly 7.6% in 2025-26. There is no denying that these numbers signal a clear trend. India has sustained annual GDP growth above 7% for several years despite global shocks, supply disruptions and tighter financial conditions.

Public investment in infrastructure, strong growth in services and steady domestic demand have supported this expansion.However, behind this impressive macroeconomic performance lies a stark and more troubling reality. The recent World Inequality Report 2026 shows that the gains from growth remain deeply uneven. Inequality in India ranks among the world’s highest and has barely shifted over the past decade.

The richest 10% capture about 58% of national income, while the bottom half receives only 15%. Wealth inequality is even sharper, with the top 10% holding roughly 65% of total wealth and the top 1% alone controlling about 40%. Further, the gap between the richest and the poorest has shown little change between 2014 and 2024.

The report also highlights that India’s middle class, the backbone of our economy, remains a squeezed and fragile group, capturing only a modest share of income, owning limited wealth and gaining far less from growth compared to the top. These numbers reveal an uncomfortable contrast. India’s economy is