By India is facing an income inequality crisis of historic proportions, with some experts warning that the current divide between the rich and the poor is worse than what the country experienced during British colonial rule. Financial analyst Hardik Joshi has sounded the alarm, highlighting that the top 1% of India’s population now controls over 40% of the nation’s total wealth, while the bottom 50% owns a mere 6.4%.
In a viral LinkedIn post that has drawn widespread attention in policy, academic, and economic circles, Joshi stated: “India’s inequality crisis has surpassed levels seen under British rule. The top one percent now has 40.1% of the nation’s wealth, while the bottom half barely scrapes by with just over six percent.” His claims echo the growing concern that the country’s rapid economic expansion is benefiting only a select few, leaving the majority behind.
Widening Economic Divide
According to data from the World Inequality Lab for 2024, the income share of India’s wealthiest 1% has surged over the past two decades, far outpacing the earnings of the rest of the population. Joshi emphasizes that this isn’t just an unfortunate side effect of growth—it’s a direct result of systemic policies that favour the rich.
“The structure of India’s economy and governance protects the wealthy and keeps them in control,” Joshi argues. “Meanwhile, the rest are stuck in a cycle of low wages, job insecurity, and limited access to essential services.” He further adds, “This is not just an economic issue—this is a structural and political failure.”
The financial analyst drew attention to the fact that the top 10% of earners capture more than 57% of the national income, while the poorest half are left with barely a fraction. This, he says, is a recipe for long-term instability and social unrest.
Growth Without Inclusion
Although India is often celebrated as one of the fastest-growing major economies, Joshi and others point out that this growth is heavily skewed in favour of the elite. Reports by the Centre for Monitoring Indian Economy (CMIE) indicate that while urban wealth holders have largely recovered from the COVID-19 pandemic, rural households continue to struggle with mounting debt, underemployment, and stagnant wages.
In early 2025, an Oxfam India report noted that the wealth of the country’s 100 richest individuals exceeded the combined budgets of several major ministries, underscoring the extent to which resources are concentrated at the top.
Joshi criticizes policies that offer tax relief and subsidies to large corporations while underfunding social sectors such as education, healthcare, and housing. He calls out what he sees as a deliberate strategy: “They’ve managed to reframe social welfare as charity for the poor, while tax breaks for billionaires are branded as economic reform.”
Political Influence and Corporate Power
Joshi also points to the influence of corporate lobbying, political funding, and media control in shaping policies that entrench inequality. “The system isn’t broken,” he says. “It’s working exactly as designed—for those who already have wealth and power.”
Economists like Dr. Prabhat Patnaik have expressed similar concerns. Patnaik has previously warned that rising inequality could destabilize democratic institutions and weaken social cohesion. “If wealth continues to concentrate in the hands of a few, the democratic foundations of the country are at risk,” he said in a recent lecture.
Calls for Reform
To address the widening gap, Joshi proposes a series of bold reforms, including:
- A progressive wealth tax targeting the ultra-rich
- Strengthening labour protections and increasing minimum wages
- Breaking up monopolistic market structures
- Investing heavily in universal public healthcare and education
He cautions that these changes will not happen without widespread public pressure and political will. “We can’t rely on the same power structures that created this inequality to solve it,” Joshi says. “We need grassroots mobilisation and real political courage.”
He ends his post with a call to action: “This isn’t inevitable. It’s a choice. And we must choose whether to protect privilege or build a fairer future.”
A Tipping Point?
The sharp increase in inequality is prompting more experts and civil society groups to push for urgent reforms. While India’s headline GDP numbers continue to impress, the question remains: who is truly benefiting?
Without targeted policy interventions and a shift in economic priorities, analysts fear that India’s growth story may become unsustainable—both economically and socially. As Joshi and others have warned, ignoring the warning signs could put the country’s long-term future in jeopardy.
