India inequality numbers may be misleading because welfare support is ignored in key data

Published on 24 April 2026

A headline Gini of 0.61 falls almost to zero

New research challenges the widely cited pre-tax Gini coefficient of 0.61, arguing it overlooks how government welfare reshapes household resources. By factoring in benefits such as food and housing, the post-fiscal Gini is reported to fall dramatically, even approaching zero, reshaping how India’s inequality is understood and debated.

Common pre tax Gini estimates may overstate inequality
Key welfare programs like food and housing are not reflected
Post fiscal Gini reportedly drops sharply, near zero
The findings could change how inequality is publicly framed

#inequality #welfare #gini coefficient #policy #income data

Read the full story at The Economic Times

This summarization was done by Beige for a story published on The Economic Times

India inequality numbers may be misleading because welfare support is ignored in key data

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