India Becomes World’s Fourth-Most Equal Country

GG News Bureau
New Delhi, 5th July: India has emerged as the fourth-most equal country in the world, according to a recent World Bank report, marking a significant decline in income inequality between 2011-12 and 2022-23. This notable achievement accompanies a dramatic reduction in extreme poverty, which dropped from 16.2% to just 2.3% during the same period.

Quoting the report, an official government release highlighted that India’s Gini Index now stands at 25.5, placing it just behind the Slovak Republic, Slovenia, and Belarus — and ahead of countries like China (35.7), the United States (41.8), and the United Kingdom.

The Gini Index, a widely used statistical measure of income or consumption distribution, ranges from 0 (perfect equality) to 100 (absolute inequality). A lower score reflects a more equitable society. India’s score of 25.5 places it in the “moderately low” inequality category, a segment that includes just 30 countries globally, many of them advanced economies with robust welfare systems such as Iceland, Finland, Norway, and Belgium.

Government Attributes Success to Welfare Schemes

The central government credited this shift to focused pro-poor initiatives and efficient social delivery mechanisms implemented over the past decade. Key initiatives include:

• PM Jan Dhan Yojana for financial inclusion
• Direct Benefit Transfer (DBT) for targeted subsidies
• Ayushman Bharat for healthcare access
• Stand-Up India and PM Vishwakarma Yojana for entrepreneurship and self-reliance

“These programmes have bridged historical socio-economic gaps, enabling broader access to food, banking, healthcare, and employment,” the release stated.

The government also noted that 171 million Indians have been lifted out of extreme poverty over the past ten years. This figure is based on the global poverty line of $2.15 per day, as defined by the World Bank until June 2025.

A Model of Inclusive Growth

The official statement emphasized that India’s achievement represents more than just statistical progress. “India’s Gini Index of 25.5 reflects real change in people’s lives. It shows that equality and development can go hand-in-hand,” it read.

The Gini Index, which was 28.8 in 2011, has steadily declined to 25.5 in 2022, signaling consistent improvement in income distribution. The report cited India’s ability to balance economic reform with strong social protection measures as the cornerstone of its success.

“As the world seeks models that combine economic growth with social equity, India’s experience offers a compelling example,” the government release concluded.