The most painful and visible facet of inequality in economic inequality. A study conducted by Oxfam reported that 77% of the total national wealth generated in India goes to the top 10 per cent of the Indian population. During the first quarter of this financial year it was observed that while there was a decline of 23.9% in the Indian economy and an approximate salaried job loss of 2.1 crore till August, there was a dramatic increase in the wealth of most Indian billionaires. Though successive governments have tried to reduce inequalities, success has been mixed. Economic inequality can only be reduced by instituting a suitable macroeconomic policy environment. Appropriate monetary and fiscal policies can mobilize resources for progressive social policies and bring a direct impact on income distribution.