 "India ranks 4th in income equality, ahead of G7 and G20 nations; Jan Dhan & DBT reforms credited")
India has emerged as one of the most income-equal societies globally, securing the fourth spot in the latest World Bank rankings with a Gini Index of 25.5. The country now trails only the Slovak Republic, Slovenia and Belarus in terms of income equality.
The Gini Index is a widely used measure of income distribution, where a score of 0 indicates perfect equality and 100 reflects maximum inequality. India’s current score marks a significant improvement from 28.8 in 2011, highlighting steady progress towards equitable growth.
“This reflects how India’s economic progress is being shared more evenly across its population,” said a statement from the Ministry of Social Welfare. “Behind this success is a consistent policy focus on reducing poverty, expanding financial access, and delivering welfare support directly to those who need it most.”
India’s Gini score now places it ahead of many advanced and emerging economies, including China (35.7), the United States (41.8), and all G7 and G20 nations, according to the World Bank data.
The country’s strong performance in reducing poverty has played a central role in achieving greater equality. The World Bank’s Spring 2025 Poverty and Equity Brief reports that 171 million Indians were lifted out of extreme poverty between 2011 and 2023. The poverty rate fell sharply from 16.2 per cent to just 2.3 per cent during this period, based on the USD 2.15 per day global poverty threshold.
The release also highlights upon, government initiatives have underpinned this transformation. Flagship programs like PM Jan Dhan Yojana have expanded financial inclusion, with over 55 crore bank accounts. Aadhaar, India’s digital ID system, now covers more than 142 crore individuals, streamlining welfare delivery through Direct Benefit Transfers, which saved Rs 3.48 lakh crore by March 2023.
Impact Shorts
More ShortsHealthcare equity has also improved through Ayushman Bharat, which provides Rs 5 lakh health coverage to families and has issued over 41 crore cards. The Stand-Up India scheme supports SC/ST and women entrepreneurs, while the PM Vishwakarma Yojana backs artisans with loans and training. PMGKAY, India’s food security scheme has benefited over 80 crore citizens, it added.
With inputs from agencies
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