Wealth Inequality in India

How wealth is distributed in India, how it has changed since independence, and the role of land, gold, housing and business ownership.

Wealth, what people own, is far more unequally distributed than income in almost every country, including India. Understanding who owns what helps explain opportunity and security across Indian society.

What Indian households own

Most Indian household wealth is held in physical assets, such as land, housing and gold, rather than financial assets like shares and deposits. The RBI’s 2017 household finance committee found that the average Indian household held the large majority of its wealth in real estate and gold. For many rural households, land is the most important asset.

How unequal is it?

Surveys such as the All India Debt and Investment Survey show that wealth is highly concentrated. The top 10 percent of households hold a large majority of total wealth, while the bottom half holds only a small share.

Estimates by the World Inequality Lab suggest that the top 1 percent’s share of wealth in India rose substantially from the 1980s, to around 40 percent by 2022 to 2023. The number of Indian billionaires has grown rapidly, with India having one of the largest numbers of billionaires in the world.

Sources of wealth inequality

Land: land ownership is unequal, shaped by history, including caste and colonial land systems.
Inheritance: wealth passes between generations.
Business ownership: returns from successful companies concentrate wealth.
Rising asset prices: when land, housing and share prices rise, owners gain, while those without assets do not.
Caste and social group: surveys show large wealth gaps between social groups, with Scheduled Castes and Scheduled Tribes holding much less wealth on average.

Why it matters

Wealth provides security against shocks, collateral for loans and the ability to invest in education and business. Large wealth gaps can limit opportunity and mobility.

Two families, same income

Two families earn the same income. One inherited farmland and a house; the other rents and owns nothing. When a medical emergency strikes, the first family can borrow against land; the second must take high-interest loans or cut spending on education. Equal income does not mean equal security.

Policy debates

Debates include inheritance or wealth taxes, land reforms, expanding financial inclusion so poorer households can build savings, and education to widen opportunity. India abolished its wealth tax in 2015 and has had no estate duty since 1985.

Thinking wealth and income inequality are the same

Wealth accumulates over generations and is usually far more concentrated than income. Families with similar incomes can have very different wealth and security.

Key takeaways

Most Indian household wealth is in land, housing and gold.
Wealth is highly concentrated, with the top 10 percent holding a large majority.
Land, inheritance, business ownership, asset prices and caste shape wealth gaps.
India abolished its wealth tax in 2015 and estate duty in 1985.