Income inequality in India has evolved significantly since independence, shaped by economic policies and social shifts. The early post-independence era (1950s–1970s) saw persistent disparities despite state control and initiatives like land reforms, with the income share ratio between the top 10% (D10) and bottom 10% (D1) remaining stable at 10–11. Liberalization in 1991 spurred rapid economic growth but widened inequality. The Gini index, which had improved to 0.395 by 2015-16, surged to 0.528 in 2020-21 during the COVID-19 pandemic, highlighting the disproportionate impact on lower-income groups.

Post-pandemic recovery measures, including welfare programs like MNREGA and GST reforms, helped reduce the Gini index to 0.410 and the income share ratio to 12.84 by 2022-23. The bottom 50% saw their income share rise to 22.82%, indicating progress. However, persistent structural disparities call for sustained and adaptive policies to ensure inclusive growth and equitable income distribution.