India’s income gap with advanced economies remains significant, with even its wealthiest households having lower daily consumption levels than the poorest sections of several developed countries. Data from the World Bank’s 2026 Poverty and Inequality Platform highlights the challenge of raising living standards across the country.
According to the data, the richest 10% of Indians have a daily income or consumption threshold of around $10 (approximately Rs 950) per person. In comparison, the threshold stands at $25 for the poorest 10% in the US, $31 in Canada, and $28 in both Germany and Australia.
The figures suggest that India’s highest income group can have lower consumption levels than the lowest income groups in several wealthier economies.
The income gap extends beyond inequality
The data also highlights the difference in living standards between India and advanced economies. While the richest 10% of Indians have a daily consumption threshold of around $10 per person, the corresponding figure is $173 in the US, $129 in Canada and Australia, and $128 in Germany.
According to India’s Economic Survey, an individual earning around Rs 80,000 per month falls within the country’s top 10% of earners. However, the World Bank figures indicate that consumption levels in this group remain considerably lower than those in several developed economies.
At the other end of the income distribution, the poorest 10% of Indians have a daily income or consumption threshold of approximately $3 per person.
India needs to raise incomes across the economy
Ahona Duttagupta, programme associate at the Foundation for Economic Development, said the comparison highlights a broader challenge beyond income inequality: low income levels across much of the Indian economy.
She emphasised that improving the lives of poorer households is essential, but reducing inequality alone will not make India prosperous if overall incomes remain significantly below those in wealthier countries.
“In India, consuming $10 (around Rs 950) a day can place a person among the richest 10 percent. In countries such as Canada, Japan and the US, the same amount can put a person among the poorest 10 percent,” Duttagupta said.
Productivity seen as key to higher incomes
Duttagupta identified productivity growth as a key factor in improving wages, creating better jobs and raising household incomes over the long term.
She said stronger productivity depends on innovation and an environment where businesses can experiment, expand successful ideas and recover from genuine failures.
The report also highlighted the importance of making business expansion easier, ensuring predictable taxation, speeding up contract enforcement and strengthening industrial ecosystems. These measures could help Indian businesses compete globally and support higher incomes across the economy.
Also read: Viksit Workforce for a Viksit Bharat
Do Follow: The Mainstream LinkedIn | The Mainstream Facebook | The Mainstream Youtube | The Mainstream Twitter
About us:
The Mainstream is a premier platform delivering the latest updates and informed perspectives across the technology business and cyber landscape. Built on research-driven, thought leadership and original intellectual property, The Mainstream also curates summits & conferences that convene decision makers to explore how technology reshapes industries and leadership. With a growing presence in India and globally across the Middle East, Africa, ASEAN, the USA, the UK and Australia, The Mainstream carries a vision to bring the latest happenings and insights to 8.2 billion people and to place technology at the centre of conversation for leaders navigating the future.