Global Growth Fuels Inequality: India Can't Escape Widening Wealth Gap

• Economic growth globally, including G7, OECD, and emerging economies like India, China, and Brazil, is consistently linked to rising income and wealth inequality.
• In India (2022-23), the top 1% earned 22.6% of income and held 40.1% of wealth, while the bottom 50% earned 15% of income and held only 6.4% of wealth.
• Wealth inequality is significantly more pronounced than income inequality, with the richest 1% owning a disproportionate share of global assets.
• Drivers include technological change, globalization, financial market growth, reduced progressive taxation, and weakened labor protections.
• While some welfare states show exceptions, market-driven economies without strong redistributive policies see inequality increase, a path India is currently on.

Why It Matters: Rapid economic growth often exacerbates inequality; India faces this global challenge.