Inequality has been rising in India and declining in Brazil in recent years. Early findings of the research at IHD point to some of the factors which drive these different trends. For instance, in the Brazilian labour market the wage gap between formal and informal workers has narrowed, whereas in India this is not the case for the wage gap between regular and casual workers. Inequality across regions has been high in Brazil in the past but is now narrowing; the opposite is true in India. And there has been a reduction in wage differences between social groups in Brazil, while in India the picture is complex with gaps widening between some groups and narrowing between others. Clearly a variety of factors is involved, and work is in progress to explore the patterns further.