India becomes fourth 'most equal' country globally

New Delhi: Inequality in India has come down significantly between 2011-12 and 2022-23, making it the fourth-most equal country globally, according to a World Bank report.

This is in addition to a sharp decrease in extreme poverty, which has dropped from 16.2 per cent in 2011-12 to 2.3 per cent in 2022-23, an official release said quoting World Bank data.

The government attributed the reduction in inequality to various initiatives and schemes pursued during the last decade.

The only three countries which have a better Gini Index score, a measure of equality, are the Slovak Republic, Slovenia and Belarus.

India is much better placed than countries like China, the USA and the United Kingdom.

"...India's Gini Index stands at 25.5, making it the fourth most equal country in the world, after the Slovak Republic, Slovenia and Belarus," the statement said.

The Gini Index helps in understanding how equally income, wealth or consumption is distributed across households or individuals in a country. It ranges in value from 0 to 100.

A score of 0 means perfect equality, while a score of 100 means one person has all the income, wealth or consumption and others have none, hence absolute inequality. The higher the Gini Index, the more unequal a country is.

India's score is much lower than China's 35.7 and far lower than the United States, which stands at 41.8.

As per the World Bank’s report, which has released the data for 167 countries, India falls into the "moderately low" inequality category, which includes Gini scores between 25 and 30.

India is only a fraction away from joining the "low inequality" group.

The government attributed this achievement to a sharp reduction in the poverty level in the last decade.

According to the World Bank report, 171 million Indians have been lifted out of extreme poverty over the past decade.

The share of people living on less than $2.15 a day, which was the global threshold for extreme poverty till June 2025, fell sharply from 16.2 per cent in 2011-12 to just 2.3 per cent in 2022-23.

Globally, just 30 countries fall into the "moderately low" inequality category, including several European countries with strong welfare systems.

These include Iceland, Norway, Finland, and Belgium. It also features growing economies like Poland and wealthy nations like the United Arab Emirates.

The release said India's journey towards a more equal society is reflected in its Gini Index over the years.

The index was measured at 28.8 in 2011 and reached 25.5 in 2022.

"This steady shift shows that India has made consistent progress in combining economic growth with social equity," it said.

It further said India's progress towards greater income equality is backed by a series of focused government initiatives.

These schemes aim to improve financial access, deliver welfare benefits efficiently, and support vulnerable and underrepresented groups.

"Together, they have helped bridge gaps, boost livelihoods, and ensure that growth reaches all sections of society," the release said.

It has cited schemes, like PM Jan Dhan Yojana, Direct Benefit Transfer, and Stand-Up India, among others, which have helped India in its progress towards greater income equality.

"India's path to income equality has been steady and focused. The Gini Index of 25.5 is not just a number. It reflects real change in people's lives. More families now have access to food, banking, healthcare, and jobs," the release said.

What sets India apart is its ability to balance economic reform with strong social protection, it said.

Targeted schemes like Jan Dhan, DBT, and Ayushman Bharat have helped close long-standing gaps," it said.

At the same time, programmes such as Stand-Up India and PM Vishwakarma Yojana are helping people create wealth and secure livelihoods on their own terms.

"As the world looks for models that combine growth with fairness, India's example stands out. Its experience shows that equality and development are not separate goals," the release said.

When supported by sound policy and inclusive intent, they move forward together, it added.