According to the State Bank of India (SBI), income inequality in India has significantly decreased over the past decade. The SBI’s report examines taxpayer data and reveals a decrease in the Gini coefficient from 0.472 in 2014-15 to 0.402 in 2022-23, indicating a reduction in inequality. However, this analysis is based on taxpayer data, which excludes a large portion of income-earners. Data from the Periodic Labour Force Survey (PLFS) shows that almost 80% of income-earners earn less than the minimum taxable amount. Further analysis of the PLFS data demonstrates a polarization in incomes, with the top 10% experiencing faster growth compared to the bottom 30%. Although the Gini coefficient indicates a decline in inequality, it masks the widening gap amongst income-earners.