Abstract:-

This paper examines the trajectory of income inequality in India since independence, relying on lesser-known but rigorously conducted household income surveys by private research institutions such as the National Council of Applied Economic Research (NCAER) and People Research on India’s Consumer Economy (PRICE). The analysis primarily draws on findings from these studies over the past seven decades, revealing a complex landscape shaped by economic policies, demographic shifts, and political changes. While substantial economic growth has been achieved, income inequality has seen periods of both improvement and deterioration. The Gini index improved from 0.463 post-independence to 0.367 in 2015-16 but worsened to 0.506 by 2021 due to disruptions such as the COVID-19 pandemic. However, recent data (2022-23) shows a positive trend, with the Gini index decreasing to 0.410, suggesting effective post-pandemic recovery measures. Key findings include shifts in income distribution among the top and bottom percentiles and significant changes across income distribution percentiles. The paper underscores the need for sustained policy efforts and holistic strategies to promote inclusive growth and reduce income disparities. The analysis also critically evaluates the divergence between these surveys and global inequality estimates, such as those provided by the World Inequality Database (WID), advocating for a more integrated approach to understanding and addressing disparities.