For any economy, the measurement and value of its GDP is often looked at as the most important indicator of economic growth and prosperity. And while the GDP does play a large role in establishing a robust economy for any country, what is of utmost importance for its continued growth is its underlying composition.  The GDP or gross domestic product of an economy refers to the sum total of value of the goods and services produced in a given economy over a given period of time, usually a year. It is also used as a measure for a nation’s income. Its composition is dependent upon the contribution of the economy’s different sectors and segments of the population. Economic Inequality occurs due to the uneven distribution of this income and wealth across the various population segments of an economy. The greater the unevenness of distribution, the higher the level of inequality. This inequality creates a rich - poor divide in the economy which, if not treated at an early stage through proper policy intervention, can lead to serious consequences for the economy. The population can be divided on the basis of various factors such as gender, religion and caste, geographical location, sector of employment, level of education or race to find the presence of different types of inequality.

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Keywords: Economic Inequality, GDP, Economic Growth, Geographical Location, Types of Inequality.