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📊 WORLD INEQUALITY REPORT 2026 – EXPLAINED The World Inequality Report 2026 has raised serious concerns about the growing gap between rich and poor, especially in India. The report shows that India is among the most unequal countries in the world when it comes to both income and wealth distribution. 🔹 Key Income Inequality Findings (India) • Top 10% earn 58% of India’s total income • Bottom 50% earn only 15% • In 2022, the top 10% earned 57% and bottom 50% earned 13% → inequality has barely improved 🔹 Wealth Inequality – Even More Alarming • Top 10% own 65% of total wealth • Top 1% alone hold nearly 40% of all wealth • Bottom 50% possess only a marginal share 🔹 Average Income & Wealth (PPP) • Average income per person: €6,200 • Average wealth per person: €28,000 🔹 Gender Inequality in India • Female labour force participation: 15.7% (almost unchanged in a decade) • Women earn: – 61% of men’s income per hour (excluding unpaid work) – Only 32% when unpaid household work is included • Women’s share in labour income: – South & Southeast Asia: 20% – MENA region: 16% – Europe/North America: ~40% 🌍 Global Inequality Trends • Top 0.001% (around 60,000 people) own 3 times more wealth than the bottom 50% of humanity • Global top 10% own 75% of wealth • Bottom 50% own just 2% • Top 1% hold 37% of global wealth 💸 Ultra-Rich Divide • Top 0.001% average wealth: €1 billion • Richest 56 people globally hold around €53 billion each ➡️ Inequality exists even among the rich 📉 India in Global Income Distribution • 1980: India & China were both in the bottom half • 2025: – China moved up, creating a large middle class – India slipped further down → majority now in the global bottom 50% – Sub-Saharan Africa remains the worst affected 🌱 Climate Inequality • Bottom 50% cause only 3% of emissions • Top 10% cause 77% • Top 1% alone cause 41% ➡️ Climate crisis is driven mainly by the rich, not the poor ⚠️ Why Inequality Persists • Weak progressive taxation & tax avoidance by ultra-rich • Low public spending on health, education & nutrition • Limited social security, pensions & unemployment support ✅ Possible Solutions • Progressive taxation • Strong public services (education, healthcare, nutrition, childcare) • Social protection (pensions, cash transfers, unemployment benefits) 📌 For UPSC, State PCS & GS Paper relevance – this report is crucial.