The richest one percent of Indians have increased their share of the nation’s wealth by about 62 percent between 2000 and 2023, according to a new global inequality report commissioned by the South African Presidency of the G20.
The study, led by Nobel Prize-winning economist Joseph Stiglitz, warns that inequality has reached “emergency” levels worldwide, threatening democracy, economic stability and even climate goals.
The report, prepared by the G20 Extraordinary Committee of Independent Experts on Global Inequality, found that the richest 1% of the global population captured 41% of all new wealth created between 2000 and 2024. In contrast, the poorest half of the world received just one per cent. The committee includes economists Jayati Ghosh, Winnie Byanyima and Imraan Valodia, and argues that the growing divide is not inevitable but the outcome of deliberate policy choices.
Although global inequality between nations appears to have narrowed slightly—mainly due to economic growth in populous countries like China and India—the divide within nations has deepened. In more than half of the world’s countries, which together account for nearly three-quarters of the global population, the wealthiest 1% have expanded their share of national wealth.
In India, the top one per cent grew their share by 62% over the past two decades, compared to 54% in China. The report points out that while per capita incomes have risen, most of the gains have gone to those already at the top. For ordinary citizens, this growing concentration of wealth has translated into rising inequality in opportunities, access and living standards.
The authors argue that inequality is a political choice rather than an economic destiny. “Extreme inequality is a choice,” the report notes, urging global cooperation to reverse the trend. It adds that countries with high inequality are seven times more likely to experience democratic decline than those with fairer income distribution.
To tackle the crisis, the committee has proposed the creation of an International Panel on Inequality, modelled on the Intergovernmental Panel on Climate Change. The new body, if established under South Africa’s G20 Presidency, would help governments track inequality trends, understand their causes and design policies based on reliable data.
The report also links inequality with social distress. It estimates that 2.3 billion people now face moderate or severe food insecurity, 335 million more than before 2019. Nearly half of the world’s population still lacks access to essential health services, while 1.3 billion people are pushed into poverty each year due to out-of-pocket medical expenses.
The findings underline a slowing pace of poverty reduction since 2020, with some regions even moving backwards. While global wealth continues to expand, its concentration in fewer hands, the authors warn, could deepen social divisions and weaken democratic systems.
For India, where economic growth often makes headlines, the report raises a crucial question: who truly benefits from it? The steady climb of the top one per cent suggests that the country’s next policy challenge may not be about creating wealth—but ensuring it is more evenly shared.