Income inequality continues to be a major concern in India’s development discourse, despite considerable economic expansion in recent decades. Variations in employment opportunities, access to education, financial inclusion, regional development gaps, and social protection measures significantly shape income distribution across the population. This study analyses the major determinants influencing income inequality and evaluates the effectiveness of government interventions aimed at reducing disparities. Using a mixed-method approach supported by primary responses and secondary data from official reports, the analysis shows that public employment programmes, social welfare schemes, and financial inclusion initiatives improve income security and expand opportunities for disadvantaged groups. However, persistent issues such as administrative bottlenecks, uneven regional growth, inadequate awareness, and structural inequalities reduce their overall impact. The study emphasizes the need for stronger institutional coordination, effective monitoring, and community participation to ensure that economic progress is distributed equitably across all sections of society.