Divided Ascent

India, with its large population and growing economy, is increasingly being viewed as a potential leader in shaping the global order. While the country has made significant progress in GDP growth, industrial capacity, and technological innovation, it continues to face challenges in establishing itself as a superpower. One notable concern is the persistent wealth gap, which may influence social stability, human development, and overall economic productivity.

According to Oxfam, the top 1% of India’s population holds over 40% of the country's wealth, while the bottom 50% possesses just 3%. This level of disparity presents obstacles to building a growth model that is both inclusive and sustainable. Disparities in access to quality education, healthcare, and employment opportunities — particularly between urban and rural regions — can affect human capital development and limit broader economic participation.

For instance, while urban hubs like Delhi, Mumbai, and Bangalore are experiencing growth in technology and services, many rural areas remain reliant on agriculture and face limited access to basic infrastructure and services. This urban-rural divide presents a challenge in achieving balanced development across the country.

Another concern is employment generation. Despite India’s economic growth, job creation has not kept pace with the needs of its large, young workforce — 65% of the population is under the age of 35. While sectors such as digital services and renewable energy are expanding, ensuring equitable access to these opportunities remains important for inclusive development.

India may also face the risk of entering a “middle-income trap,” a situation where countries experience economic stagnation after achieving a certain income level. Contributing factors may include a mismatch in skills, insufficient investment in infrastructure, and regional disparities. Addressing these concerns could help India sustain its growth trajectory and enhance its global competitiveness.

Several policy measures could be considered to reduce inequality and strengthen long-term economic prospects. These may include progressive taxation, investment in public services such as education and healthcare, and infrastructure development to improve connectivity between rural and urban regions. Additionally, promoting digital inclusion and entrepreneurship in underdeveloped areas may help broaden participation in the modern economy.

By addressing these structural challenges, India has the potential to pursue a more balanced and resilient economic path. Continued efforts to invest in human capital and reduce regional disparities could support the country’s aspirations of playing a larger role in shaping the global economic landscape.