Wide income gaps emerge across rural and urban areas, with top earners far ahead of the bottom 50 percent households
Longleng records highest income inequality among districts, while urban areas show slightly higher disparity than rural areas
A government-backed study on income distribution in Nagaland has revealed sharp economic inequality in the state, with a Gini coefficient of 0.46 highlighting a wide gap between the highest and lowest income groups.
The “Report on Income Disparity in Nagaland” is based on a field survey conducted between October and December 2024, with data corresponding to the calendar year 2024. The study was undertaken under the central sector scheme of the Ministry of Statistics and Programme Implementation (MoSPI), Support for Statistical Strengthening Sub-scheme, in collaboration with Hyderabad University, India.
A total of 4,396 households were surveyed across the state, including 1,315 households from 60 urban wards and 3,080 households from 140 rural villages.
The findings show that the rural Gini coefficient stands at 0.42, while the urban Gini coefficient is 0.44, indicating slightly higher income inequality in urban areas compared to rural regions.
In terms of income distribution, the bottom 50 percent of households account for about 18 percent of the total income in the state, while the top 5 percent receive around 21 percent. The report also highlights a sharp income gap, with the top 5 percent recording a mean monthly income of Rs. 71,028, compared to Rs. 1,639 for the bottom 50 percent.
At the district level, Longleng records the highest income inequality with a Gini coefficient of 0.492, while Phek has the lowest at 0.366. In rural areas, Longleng again shows the highest inequality at 0.456, with Zunheboto recording the lowest at 0.330. In urban areas, Longleng stands highest at 0.509, while Zunheboto records the lowest at 0.359.
The “Report on Income Disparity in Nagaland” was released on March 9, 2026 at the Chief Secretary’s Conference Hall, Nagaland Civil Secretariat, Kohima by Chief Secretary to the Government of Nagaland, Sentiyanger Imchen, IAS. The event was held in the presence of Akunu S Meyase, Secretary to the Government of Nagaland, Neidilhou Keditsu, Director, and other senior officers and officials of the Department of Economics and Statistics, Government of Nagaland.
Understanding the Gini coefficient
The Gini coefficient is a statistical measure used to show how equally or unequally income is distributed in a population.
It ranges from 0 to 1, where 0 is perfect equality (everyone earns the same income) and 1 is perfect inequality (one person earns everything, others earn nothing).
A low Gini coefficient means income is more evenly distributed among people, while a high Gini coefficient means there is greater income inequality, with a larger gap between the rich and the poor.
There is no universally accepted ideal Gini coefficient, but economists generally use broad benchmarks to interpret levels of income inequality. A Gini coefficient between 0.20 and 0.30 is usually considered low inequality, reflecting a relatively equal distribution of income. A range of 0.30 to 0.40 indicates moderate inequality, while values of 0.40 and above are taken as high inequality. A coefficient above 0.50 is considered very high inequality.
In practical terms, societies with a more balanced income structure tend to fall roughly within the 0.25 to 0.35 range. However, perfectly equal societies are rare, and some degree of inequality exists in all economies.
When a report indicates a high Gini coefficient, such as 0.46 in Nagaland, it suggests that income is unevenly distributed, with a noticeable gap between higher and lower income groups.
