Govt says India ranks 4th in income equality on World Bank database

India's Gini Index score of 25.5 places it among the world's most equal societies, ahead of China and the US, reflecting shared growth and effective poverty reduction efforts

India has been ranked fourth in the world for income equality, a PIB release said citing a World Bank report. India scored 25.5 on the Gini Index, just behind the Slovak Republic (24.1), Slovenia (24.3), and Belarus (24.4). This makes India one of the most equal societies globally — a significant achievement for such a large and diverse country, 

 

India’s progress in achieving this balance is the result of sustained economic growth paired with targeted social policies focused on reducing poverty and expanding financial access, the PIB release said.

   

 

 

What is Gini index?

 

The Gini Index measures the distribution of income, wealth, or consumption across a population. A score of 0 represents perfect equality, while 100 reflects absolute inequality — where one individual holds all the resources. A lower score signifies a more equitable society. With a Gini score of 25.5, India falls into the “moderately low” inequality bracket (25–30) and is on the threshold of joining the “low inequality” group, the PIB release said.

 

Comparison with other nations

 

India’s Gini Index not only places it ahead of China (35.7) and the United States (41.8), but also makes it more equal than every G7 and G20 country. The list of “moderately low” inequality countries includes European nations like Iceland, Norway, Finland, and Belgium, as well as the UAE and Poland. In total, only 30 countries fall into this category globally.

 

India’s current score marks a notable improvement from 28.8 in 2011, indicating a steady trend toward more equitable distribution of resources over the past decade.

 

Poverty reduction fuelling equality

 

India’s improved equality metrics are closely tied to a significant reduction in poverty. According to the World Bank’s Spring 2025 Poverty and Equity Brief, 171 million Indians exited extreme poverty over the past 10 years. The share of people living on less than $2.15 per day — the previous global benchmark for extreme poverty — fell from 16.2 per cent in 2011-12 to just 2.3 per cent in 2022-23. Using the revised threshold of $3.00 per day, India’s poverty rate is estimated at 5.3 per cent, the PIB release said.

 

This success has been supported by government initiatives designed to reach the most vulnerable sections of society.

 

Key government schemes driving inclusion

 

Several flagship schemes have contributed to improving financial access, welfare delivery, and entrepreneurship among marginalised groups:

 

-PM Jan Dhan Yojana: Over 556.9 million bank accounts opened, expanding financial inclusion

-Aadhaar: More than 1,420 million digital identities issued, streamlining benefits delivery

-Direct Benefit Transfer (DBT): ₹3.48 trillion in cumulative savings, reducing leakages in welfare schemes

-Ayushman Bharat: Health cover of ₹5 lakh per family, with over 413.4 million cards issued and 32,000 empanelled hospitals. The scheme includes a version for senior citizens aged over 70 years.

-Stand-Up India: Over ₹62,800 crore in loans sanctioned to 275,000 SC/ST and women entrepreneurs

-PM Garib Kalyan Anna Yojana: 806.7 million beneficiaries received free food grains, ensuring food security during crises

-PM Vishwakarma Yojana: Nearly 3 million traditional artisans registered to receive loans, toolkits, and digital training