The Lorenz Curve illustrates income distribution trends in India from 1955 to 2022. The closer the curve is to the diagonal line, the more equally income is distributed. In 1955, the Lorenz Ratio (LR) was 0.371, indicating relatively equal income distribution. However, by 2020, the ratio peaked at 0.528, reflecting significant income inequality. A slight improvement was seen in 2022, with the ratio decreasing to 0.410, likely due to government interventions post-pandemic.

Rural income inequality increased from 1955 to 1975, rising from an LR of 0.341 to 0.388. While poverty alleviation programs reduced inequality slightly between 1975 and 1995, liberalization in the 1990s widened the income gap. By 2020, the ratio reached 0.498, worsened by rural migration and digitalization. However, in 2022, targeted policies such as MGNREGA helped reduce the LR to 0.405.

Urban inequality followed a similar pattern, with the LR rising from 0.392 in 1955 to 0.416 by 1975. The liberalization in the 1990s increased inequality, peaking at 0.532 in 2020 due to rapid urbanization and the pandemic. However, policies like PMAY and cash transfers led to a reduction in urban inequality, lowering the LR to 0.382 by 2022.

Overall, income inequality in India increased but saw signs of improvement in recent years due to targeted interventions.