India is witnessing a significant shift in wealth distribution, with the asset gap between the rich and the poor steadily narrowing, Finance Minister Nirmala Sitharaman informed Parliament. Minister highlighted that rural India is leading this transformation, driven by faster asset creation among lower-income households.
Quoting household consumption and asset data, Sitharaman said the bottom 40 per cent of the population is acquiring wealth and assets at a much faster rate than the top 20 per cent—a clear sign of improving economic mobility and inclusiveness.
The Finance Minister attributed this trend to focused government initiatives such as financial inclusion, rural infrastructure expansion, housing schemes, direct benefit transfers, and improved access to basic services including electricity, sanitation, banking, and digital connectivity. These measures, Minister said, have strengthened purchasing power and raised living standards, especially in rural areas.
Rising consumption among lower-income groups reflects growing confidence and participation in the economy, Sitharaman noted, adding that sustained public investment at the grassroots level is steering India toward more balanced and inclusive growth.
