NEW DELHI: India has emerged as one of the world’s most equal societies, according to a recent World Bank report, which highlights the country’s significant strides in ensuring equitable distribution of wealth and consumption.
Despite its vast size and diversity, India’s Gini Index stands at 25.5, placing it fourth globally after the Slovak Republic, Slovenia, and Belarus.
This makes India more equal than any G7 or G20 nation, including developed economies like the United States (41.8) and China (35.7), according to an official statement citing the report.
The Gini Index is a widely recognized measure of inequality, ranging from 0 (perfect equality) to 100 (complete inequality). A lower score indicates a more equitable society.
India’s score of 25.5 places it in the “moderately low” inequality category (scores between 25 and 30), and just a fraction away from joining the “low inequality” group, currently comprising the Slovak Republic (24.1), Slovenia (24.3), and Belarus (24.4). Out of 167 countries assessed, only these three have better scores than India.
“It reflects how India’s economic progress is being shared more evenly across its population,” the statement said.
India’s Gini Index was 28.8 in 2011, dropping to 25.5 by 2022, reflecting steady progress toward income equality. This change aligns with India’s efforts to combine economic growth with social equity.
The Spring 2025 Poverty and Equity Brief by the World Bank underscores this trend, noting that 171 million Indians have been lifted out of extreme poverty over the past decade.
The percentage of people living on less than $2.15 per day — the global threshold for extreme poverty until June 2025—has fallen sharply 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, the poverty rate for 2022–23 adjusts to 5.3%.
The report attributes India’s success to targeted government initiatives aimed at reducing poverty, improving financial access, and ensuring efficient welfare delivery. Key schemes include:
PM Jan Dhan Yojana: As of June 25, 2025, over 55.69 crore people hold Jan Dhan accounts, enabling direct access to banking and government benefits.
Aadhaar and Digital Identity: Over 142 crore Aadhaar cards have been issued as of July 3, 2025, forming the backbone of welfare delivery through reliable authentication.
Direct Benefit Transfer (DBT): By March 2023, DBT had saved the government Rs 3.48 lakh crore, streamlining welfare payments and minimizing leakages.
Ayushman Bharat: Providing up to Rs 5 lakh in annual health coverage per family, over 41.34 crore Ayushman Cards have been issued and 32,000 plus hospitals empanelled.
The Ayushman Vay Vandana scheme extends similar coverage to all citizens aged 70 plus irrespective of income. The Ayushman Bharat Digital Mission has created 79 crore health accounts linking individuals to digital health services.
Stand-Up India: Promoting inclusive entrepreneurship, the scheme has sanctioned over 2.75 lakh applications, disbursing Rs 62,807.46 crore in loans to SC/ST and women entrepreneurs.
PMGKAY (Pradhan Mantri Garib Kalyan Anna Yojana): Launched during the COVID-19 pandemic, it has supported 80.67 crore beneficiaries with free food grains as of December 2024.
PM Vishwakarma Yojana: Supporting artisans and craftspeople, the scheme has registered 29.95 lakh beneficiaries as of July 3, 2025, offering financial aid, toolkits, and marketing support.
India’s path to greater income equality demonstrates a balanced approach—combining economic reforms with robust social protection. From food and healthcare to finance and entrepreneurship, these schemes have helped close long-standing gaps and ensured that growth reaches all sections of society.
“India’s Gini Index of 25.5 is not just a statistic—it represents real change in people’s lives,” the statement added. As the world seeks models that combine growth with fairness, India’s example stands out, it added.
Agencies