Why is it in the news?
Recent analysis of income mobility trends (2014–2025) shows more households falling down the income ladder than moving upward.
The trend raises concerns about inequality and challenges claims of inclusive economic growth.
Category: Economy
Important Points:
● Income mobility refers to movement of households across income groups over time (upward, downward, or unchanged).
● The share of households experiencing downward mobility increased from 14% in 2015 to 26.8% in 2025.
● By 2025, more than one in four Indian households were worse off than in 2014.
● Upward mobility increased from 14.1% to 23.5% but remained lower than downward movement.
● The share of households remaining in the same income tier declined from over 70% to below 50%.
● Nearly 29% of rural households experienced downward mobility compared to their 2014 status.
● Economic gains were more concentrated in urban areas than rural regions.
● Caste continues to influence mobility, with higher downward movement among SC and OBC groups.
● According to the World Inequality Report 2026, the top 10% earn about 58% of national income.