India’s wage gap is widening economic inequalities

India has been among the world’s fastest-growing economies over the past decade, averaging around six percent annual GDP growth. Yet the gains from this growth have not reached all. While reports suggest that many have been lifted out of extreme poverty, economic inclusion—fulfillment of basic needs and access to opportunities that enable productive, empowered lives—remains elusive for a large share of the population. This is evident in India's per capita income, which is among the lowest in Asia. As of 2025, it stands at approximately USD 2,700 (approximately INR 2.6 lakhs per annum). Wage trends in India further illustrate a more accurate picture of economic exclusion: earnings have stagnated in real terms (that is, when adjusted for inflation), barely covering essential household needs, let alone enabling upward economic mobility. In fact, rising costs of essential goods, such as food, education, and fuel, have further eroded purchasing power. Combined with extreme income inequality, these trends have deepened the economic exclusion of a majority of India’s working population. The scale of disparity