Examining income equality is the essential developmental economic problem for study regarding economic growth within this research. The expansion of an economy requires a specific distribution of benefits to sustain long-term social disparities between different groups. The research employed panel regression methods to examine the economic growth effects of income inequality in these 75 nations from 1995 to 2022. The Gini coefficient serves as an economic measurement tool for inequality analysis, while economic growth consists of GDP increases alongside costs of investments and human development indicator improvements. We generate enhanced estimates using panel regression to explain how domestic variables and time effects affect inequality-growth relationships. Results show that rising marginalization between social classes leads to negative economic expansion. High social class separation restricts equal opportunities for education, healthcare, and medical services, thus blocking investment access and reducing human capital development that hurts current operations while damaging future development potentials. A specific distribution method of income data provides statistical proof of innovative impact because people undertake more complicated work and risk-taking actions. The study indicates that inclusive economic approaches contain independent aspects for driving sustainable development and generating fair resource allocation. Based on collected evidence, the research presents recommendations for using public health and educational funding, credit service support, progressive taxation models, and specific social assistance programs. Through quantitative research, People learn about the overall economic performance effects under equal policies balancing economic growth and equity reduction. Both development purposes and moral values must unite to establish sustainable development that reduces inequality.

Keywords: Income Inequality, Economic Growth, Panel Regression, Human Capital, Gini Coefficient, Investment, Inclusive Development.