India becomes world’s fourth most equal country, says World Bank report

India's Gini index stands at 25.5, ranking it the fourth most equal country globally, ahead of China and the US, according to the World Bank. This reflects India's success in reducing poverty and implementing inclusive welfare and financial initiatives

New Delhi: In yet another significant achievement for the Prime Minister Narendra Modi-led government, India’s Gini index now stands at 25.5, making it the fourth most equal country in the world, after the Slovak Republic, Slovenia, and Belarus, according to a World Bank report.

The Gini index is a simple yet powerful way to understand how equally income, wealth, or consumption is distributed across households or individuals in a country.

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It ranges in value from 0 to 100. A score of 0 means perfect equality, while a score of 100 means one person has all the income, wealth, or consumption, and others have none—indicating absolute inequality. The higher the Gini index, the more unequal the country.

India’s score is much lower than China’s 35.7 and significantly lower than the United States, which stands at 41.8. It is also more equal than every G7 and G20 country, many of which are considered advanced economies.

India is not only the world’s fourth-largest economy; it is also one of the most equal societies today. This is a remarkable achievement for a country of its size and diversity. It reflects how India’s economic progress is being shared more evenly across its population.

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.  According to the government, India’s strong standing on the Gini index is not a coincidence.

“It is closely linked to the country’s sustained success in reducing poverty across both rural and urban regions. The Spring 2025 Poverty and Equity Brief by the World Bank highlights this achievement as one of the most significant in recent years,” the government said in an official statement.

According to the World Bank report, 171 million Indians have been lifted out of extreme poverty over the past decade.

The share of people living on less than USD 2.15 a day—which was the global threshold for extreme poverty until June 2025—fell sharply from 16.2 per cent in 2011-12 to just 2.3 per cent in 2022-23. Under the World Bank’s revised extreme poverty threshold of USD 3.00 per day, the 2022-23 poverty rate would be adjusted to 5.3 per cent.

India’s progress toward greater income equality is backed by a series of focused government initiatives.

Some of the key schemes and initiatives include PM Jan Dhan Yojana, Aadhaar and Digital Identity, Direct Benefit Transfer (DBT), Ayushman Bharat, Stand-Up India, Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY), and PM Vishwakarma Yojana, among others.

“What sets India apart is its ability to balance economic reform with strong social protection. Targeted schemes like Jan Dhan, DBT, and Ayushman Bharat have helped close long-standing gaps. At the same time, programmes such as Stand-Up India and PM Vishwakarma Yojana are helping people create wealth and secure livelihoods on their own terms,” the government said.