The analysis of income inequality in India from 1953 to 2022 reveals significant fluctuations in both rural and urban areas. From 1953-55 to 1967-68, both rural and urban India saw rising income inequality, with urban India initially having a higher Gini ratio. By 1967-68, rural inequality peaked at 0.463, surpassing urban inequality at 0.448. This shift suggests that rural areas faced greater economic challenges, possibly due to limited opportunities. From 1967-68 to 1994-95, both regions saw a decline in inequality, with urban India experiencing a more significant drop. This period likely reflects the impact of government policies aimed at rural development and poverty alleviation.

Between 1994-95 and 2004-05, inequality increased again in both areas, driven by economic liberalization, which favored urban growth. The urban Gini ratio rose to 0.455, while rural inequality stood at 0.438. From 2004-05 to 2020-21, inequality fluctuated, with a sharp rise in 2020-21, particularly in urban India, likely due to the pandemic's impact.

By 2022-23, both rural and urban Gini ratios showed a slight decline, suggesting a partial recovery. Government interventions, such as welfare programs, may have played a role in mitigating disparities. These trends highlight the ongoing challenge of income inequality and the need for targeted policies for inclusive growth.