India Ranks 4th Globally Among the Most Equal Countries; Ahead of US, China, G7 & G20 Nations: World Bank

India has emerged as one of the world’s most equal societies, ranking fourth globally in income equality as per the latest World Bank data. With a Gini Index of 25.5, India has shown impressive progress in bridging the gap between the wealthiest and the poorest segments of society.

India’s Gini Index Falls to 25.5: What It Means

The Gini Index is a statistical measure of income or wealth inequality, where 0 indicates perfect equality and 100 represents absolute inequality. India’s Index dropped from 28.8 in 2011 to 25.5 in 2022, placing it ahead of China at 35.7 and the United States at 41.8. This milestone makes India more equal than any G7 or G20 nation and positions it just behind countries like the Slovak Republic, Slovenia and Belarus.

The improved score places India in the “moderately low inequality” category (25 to 30 range) and brings it closer to nations that have long-standing, strong welfare systems. Only 30 countries globally fall into this category, underlining the scale of India’s achievement.

Poverty Reduction Fuelling Income Equality

Between 2011 and 2023, 171 million Indians rose above the global extreme poverty line of $2.15 per day. The poverty rate fell from 16.2% to 2.3% during this time. Under the revised threshold of $3.00, the extreme poverty rate was just 5.3% in 2022–2023. This rapid transformation reflects the success of targeted government interventions and economic reforms.

Welfare Schemes Boosting Inclusive Growth

Financial inclusion through PM Jan Dhan Yojana has brought over 55.69 crore citizens into the formal banking system. Aadhaar has ensured direct and secure delivery of welfare benefits, linking over 142 crore residents with digital identities. By March 2023, Direct Benefit Transfer (DBT) saved ₹3.48 lakh crore by plugging leaks. Ayushman Bharat supported health access for 41.34 crore individuals, and Stand-Up India facilitated entrepreneurship with ₹62,807.46 crore in loans sanctioned.

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Preserving Livelihoods Through Empowerment

Initiatives like the PM Vishwakarma Yojana are preserving traditional craftsmanship while creating economic opportunities. As of July 2025, 29.95 lakh artisans have joined this platform. Meanwhile, PMGKAY has extended food security to 80.67 crore Indians, reinforcing the strong safety net that aids in societal upliftment.

Conclusion

India’s Gini Index of 25.5 reflects its successful balance of economic growth with social equity. With millions pulled out of poverty and widespread access to banking, healthcare and food security, India’s development journey is one of inclusive progress. As policy-driven equality reshapes the nation’s socio-economic landscape, the global community now views India’s model as one worth observing.

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