India has seen remarkable economic growth since the 1990s, but this has been accompanied by rising income inequality and slower poverty reduction. While some economists believe inequality can drive short-term growth, recent studies suggest the relationship between inequality and development is unclear. This has sparked debates about income redistribution and fairness, particularly when inequality arises from factors beyond an individual’s control, known as inequality of opportunity (IOp). The analysis shows that around 32% of income inequality in India is due to circumstances beyond individual control, such as parental education, parental occupation, and whether workers live in rural or urban areas. The most vulnerable groups identified are individuals from economically backward rural areas in the eastern and central regions of the country, particularly those with less-educated parents. These findings emphasize the need for targeted policies that provide social security and regional support, especially for those with vulnerable background and engaged in irregular or nonstandard employment, to address unequal opportunities in the labor market.