Relevance: GS-3 (Inclusive Growth, Inequality, SDGs) | Source: World Inequality Lab; Indian Express

News

The World Inequality Report 2026 highlights that the top 10% of Indians earn 58% of national income, while the bottom 50% earn only 15%, confirming India as one of the most unequal major economies.

The Report & Major Findings

The report, produced by the World Inequality Lab (Paris School of Economics), uses long-term tax, survey, and national accounts data to study global and national inequality.

Key India Findings:

• Top 1% controls 23% of income and 40% of wealth → among the highest globally.
• Bottom 50% holds only 6% of income and 3% of wealth.
• India’s inequality now resembles Latin America & Sub-Saharan Africa patterns.
• Gender gap persists: Women earn 61% of men’s total labour income (paid + unpaid).
• Ecological inequality: Poorest 50% generate 7% of carbon emissions, richest 10% emit 41% → key for climate justice debates.

Significance

The findings directly inform India’s priorities under:

• SDG 10 (Reduce Inequality), Redistributive taxation debates, Social protection, labour reforms, and climate equity frameworks.
•  It also strengthens India’s evidence base for welfare-policy design.

Q. Consider the following statements about the World Inequality Report:

1. It is released by the World Inequality Lab associated with the Paris School of Economics.
   
2. It tracks income, wealth, gender, and ecological inequalities.
   
3. It forms part of the official United Nations SDG reporting framework.

Select the correct answer:
A. 1 and 2 only
B. 2 and 3 only
C. 1 and 3 only
D. 1, 2 and 3