India Sees Sharp Rise in Billionaires as Income Inequality Narrows

The number of individuals who reported a gross total income of ₹100 crore or more in their income tax returns rose to 576 in AY 2025-26, the Finance Ministry told the Lok Sabha on Monday. The data was shared in a written reply to an unstarred question by Congress MP Murari Lal Meena, who had asked about the rising number of billionaires in India and its impact on inequality and growth. Minister of State for Finance Pankaj Chaudhary responded on behalf of the ministry. The ministry clarified that there is no statutory definition of the term “billionaire” under the Income-tax Act, 2025 or the earlier Income-tax Act, 1961. In its place, it shared figures for taxpayers who declared a gross total income of ₹100 crore or more, based on returns filed over the last five assessment years. According to the ministry, the number of such high-income taxpayers has risen sharply since AY2021-22: The count more than doubled between AY2021-22 and AY2022-23, dipped slightly in AY2023-24 and then rose again over the next two years, the government data stated. The AY2025-26 figure is the highest in the five-year period and roughly four times the AY2021-22 count. The data reflected annual reported income and not net worth. The ministry further said it does not maintain any data on the aggregate wealth of taxpayers, since the Wealth-tax Act, 1957 was abolished with effect from April 1, 2016. The question also asked whether the government had studied the impact of wealth concentration on inequality, investment, employment and inclusive growth. In response, the ministry cited data from several official surveys. As per the Household Consumption Expenditure Survey 2023-24, the Gini coefficient (a standard measure of income inequality) stood at 0.237 in rural India and 0.284 in urban India, down from 0.266 and 0.314, respectively, in 2022-23. The ministry said this pointed to a narrowing rural-urban gap. On employment, the ministry cited the Annual Periodic Labour Force Survey (PLFS), which showed the unemployment rate for individuals aged 15 and above falling from 3.6% in 2022 to 3.1% in 2025. It said labour markets had recovered beyond pre-COVID levels in both urban and rural areas. On poverty, the ministry referred to two NITI Aayog assessments. The National Multidimensional Poverty Index: A Progress Review 2023 showed the share of the population in multidimensional poverty falling from 24.85% to 14.96% between 2015-16 and 2019-21, lifting about 13.5 crore people out of poverty. A separate NITI Aayog discussion paper estimated a decline from 29.17% in 2013-14 to 11.28% in 2022-23, indicating that 24.82 crore people escaped poverty over that period. The ministry also listed steps taken to reduce income and wealth inequality and promote inclusive growth. On direct taxes, it pointed to India’s progressive, graded income tax slab structure and the surcharge applicable to very high earners. It also cited targeted tax incentives like the 30% deduction on additional employee costs for eligible businesses under Section 146 of the Income-tax Act, 2025, for three years; profit-linked deductions for eligible start-ups under Section 140; and cooperative-society tax benefits expanded through the Finance Act, 2026, covering cooperatives dealing in milk, oilseeds, fruits, vegetables, cattle feed and cotton seed. Sovereign wealth funds and pension funds also continue to receive tax exemptions on long-term capital gains, dividend and interest income from infrastructure investments in India, under the Finance Act, 2020. On welfare, the ministry pointed to existing government schemes, including PM Awas Yojana, PM Kisan Samman Nidhi, PM Jan-Dhan Yojana, PM Mudra Yojana, Ayushman Bharat and the Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025, which replaced the earlier rural employment guarantee law.