Results from the 2012–13 income tax data reveal that Indian incomes, particularly high salaries and wealth-related income, are statistically distributed into two distinct classes. The bulk of the reported income distribution can be explained by an exponential distribution, while a small fraction at the top follows a more unequal power law (Pareto) distribution. This distinction has important implications for inequality, and provides a point of comparison with similar statistical regularities observed in rich countries.
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EPW looks forward to your comments. Please note that comments are moderated as per our comments policy. They may take some time to appear. A comment, if suitable, may be selected for publication in the Letters pages of EPW.