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ABSTRACT Both industrialized and emerging nations are beginning to recognize the significance of the problem of economic inequality. By looking into this particular matter, the purpose of this study is to answer the question, "Does the correlation between income inequality and GDP growth vary with stage of development?" This is the question that this research intends to address. According to the findings of our sample of twenty nations, ten of which are developed and ten of which are developing, spanning the years 2000 to 2020, income inequality is a barrier to economic advancement all over the globe. On the other hand, it is rising countries that are feeling the effect far more intensely. Based on the findings of our study, we can conclude that the link between income inequality and economic development is not linear. This is because the negative impact of income disparity on economic growth grows exponentially worse beyond a certain level. An additional argument in favor of the non-linear nature of the connection is provided by this. Due to the fact that the threshold for vulnerability is lower in developing countries than it is in industrialized nations, vulnerability is more likely to occur in conditions that are less economically developed. There will be significant repercussions for public policy as a consequence of the findings, which indicate that developing countries, in particular, should make efforts to reduce income inequality if they want to foster sustainable economic growth.