Cost of Inequality

Close to three-quarters, or 75 per cent, of global wealth is owned by the top 10 per cent richest population, while the poorest half hold barely 2 per cent, according to the World Inequality Report 2026 (WIR 2026) released by the World Inequality Lab. The wealthiest, which constitutes around 60,000 multi-millionaires, controls three times more wealth than half of humanity combined, and their share has grown over the years, said the report. It has placed India as one of the most unequal countries in the world in terms of income, with the top 10 per cent of earners capturing about 58 per cent of national income, while the bottom 50 per cent receive only 15%. In terms of wealth distribution, the richest 10 per cent holds around 65 per cent of total wealth and the top 1 per cent about 40 per cent, while female labour participation stands at 15.7 per cent, which is one of the lowest in the world, and that too with no sign of improvement over the past decade. “Overall, inequality in India remains deeply entrenched across income, wealth, and gender dimensions, highlighting persistent structural divides within the economy,” said the report. Simply put, the unprecedented concentration of wealth in the hands of a few is increasing worldwide, which can be linked to stagnation of living standards, widening economic inequality, growing social intolerance and shrinking of democratic spaces.

The concentration of wealth has become a hot topic of discussion of late, with many blaming government policies for worsening the wealth gap, arguing that the benefits of economic growth are harvested by a few rich while the poor remain marginalised and disproportionately affected. When economic growth is not inclusive and wealth is not fairly distributed, social issues like poverty, gender inequality and unemployment will remain. The rich become richer, and the poor remain poor. Policy makers and people in power are aware of this, but they are doing little to address it because inequality doesn’t affect them; it rather helps them. However, the consequences of economic hardship, corruption, and nepotism can be tragic, as demonstrated by the uprisings in Sri Lanka, Bangladesh, and Nepal in recent times. The consequences of rising inequality can be catastrophic. To address the issue, the government should intervene and implement policies like a wealth tax and strong labour protection laws. Nothing will change in the absence of political will.