Income inequality has increased in both rural and urban areas of India according to the Gini coefficient. The Gini coefficient for rural India increased by 13% and for urban India by 15%, indicating rising disparities in income, expenditure, and savings patterns between rich and poor. Higher-income states and larger cities have significantly higher average incomes compared to their population shares. Factors contributing to rising income inequality in India include unequal distribution of assets, differences in growth rates across states and sectors, and lack of adequate work opportunities for those without assets.