This article utilises the National Family Health Survey-3 data and presents an empirical assessment of income-related health inequality in India. It undertakes a state-level analysis of inequities in child health by employing the widely accepted measures of concentration curves and concentration indices. It finds that the poorer sections of the population are beleaguered with ill health whether in the quest for child survival or due to anxieties pertaining to child nutrition. Further, an attempt is made to comprehend the relationship between income inequality and health status in the Indian context. The analysis reveals that the degree of health inequalities escalates when the rising average income levels of the population are accompanied by rising income inequalities. The income-poor sections have different needs and therefore, planning and intervention necessitates an understanding of the sources of inequality and recognition of the vulnerable groups to arrive at efficient resource allocation and policy decisions