Our Bureau
New Delhi
India has achieved a historic milestone by becoming the world’s fourth most equal country in terms of income distribution, according to the latest World Bank report. The development marks a dramatic shift for the nation, which now outpaces all G7 and G20 economies—including the United States, United Kingdom, and China—in income equality.
The World Bank’s assessment, based on the Gini Index, places India just behind the Slovak Republic, Slovenia, and Belarus. The Gini Index, a widely recognized measure of income inequality, assigns a score of 0 to perfect equality and 100 to maximum inequality. India’s score has improved from 28.8 in 2011 to 25.5 in 2022, placing it in the “moderately low” inequality category.
A major factor behind this achievement is the sharp decline in extreme poverty. The World Bank’s Spring 2025 Poverty and Equity Brief notes that between 2011 and 2023, 171 million Indians were lifted out of extreme poverty. The proportion of the population living on less than $2.15 per day fell from 16.2% in 2011-12 to just 2.3% in 2022-23. Under the revised poverty line of $3.00 per day, the rate stands at 5.3%.
Government initiatives have played a crucial role in this transformation. Programs such as PM Jan Dhan Yojana have expanded financial inclusion by opening over 550 million bank accounts, while the Aadhaar digital ID system has streamlined welfare delivery to more than 1.4 billion citizens. Direct Benefit Transfers have saved the government significant resources, and health coverage through Ayushman Bharat has reached over 410 million families. Food security schemes and targeted support for entrepreneurs and artisans have further contributed to equitable growth.
India’s progress is especially notable given its size and diversity. The country’s Gini Index is now significantly lower than China’s (35.7) and the United States’ (41.8), reflecting a more even distribution of economic gains.
Experts attribute this success to consistent policy focus on poverty reduction, social welfare, and financial inclusion, positioning India as a global leader in equitable growth.
