New Delhi, July 6: India has emerged as the fourth-most equal country in the world, with a Gini Index of 25.5, according to a new World Bank report that highlights a significant decline in income inequality and extreme poverty over the past decade.
Only Slovak Republic, Slovenia, and Belarus ranked better than India in the global equality index. The report places India ahead of major economies such as China (35.7), the United States (41.8), and the United Kingdom, reflecting growing equity in income distribution.
The Gini Index, which measures inequality on a scale of 0 to 100 (with 0 representing perfect equality), places India in the “moderately low inequality” category, which includes countries scoring between 25 and 30. Other nations in this bracket include Norway, Iceland, Belgium, Finland, and Poland.
India’s Gini score improved from 28.8 in 2011 to 25.5 in 2022, with the World Bank citing a sharp fall in extreme poverty as a key factor. The proportion of people living on less than USD 2.15 per day, the global poverty line until June 2025, declined from 16.2% in 2011-12 to 2.3% in 2022-23.
According to the report, 171 million Indians have been lifted out of extreme poverty in the past decade. “India’s Gini Index of 25.5 is not just a number. It reflects real change in people’s lives,” the report noted.
The Indian government attributed the progress to a decade of targeted welfare initiatives, including the PM Jan Dhan Yojana, Direct Benefit Transfer (DBT) scheme, Ayushman Bharat, Stand-Up India, and PM Vishwakarma Yojana.
“India’s path to income equality has been steady and focused,” said an official release, adding, “More families now have access to food, banking, healthcare, and jobs.”
“What sets India apart is its ability to balance economic reform with strong social protection.”
The report concluded that India’s experience offers a global example of how economic growth and social equity can be pursued together.
“India’s example stands out. Its experience shows that equality and development are not separate goals,” the World Bank said.
India is now on the cusp of entering the “low inequality” group, underscoring its progress in ensuring inclusive development alongside economic expansion.
