New Delhi, July 5 — India has emerged as the fourth most equal society in the world, achieving a Gini Index of 25.5, according to the latest data released by the World Bank. The nation now ranks just behind the Slovak Republic, Slovenia, and Belarus in income equality, outpacing major economies including China, the United States, and all G7 and G20 nations.
“It reflects how India’s economic progress is being shared more evenly across its population,” stated a release 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.”
The Gini Index measures income distribution on a scale where zero denotes perfect equality and 100 represents maximum inequality. India’s score has improved markedly from 28.8 in 2011, signalling significant strides toward equitable growth.
A sharp decline in poverty has underpinned this progress. The World Bank’s Spring 2025 Poverty and Equity Brief noted that 171 million Indians moved out of extreme poverty between 2011 and 2023. During the same period, the poverty rate plunged from 16.2 percent to just 2.3 percent, based on the global threshold of USD 2.15 per person per day.
Several government initiatives have been credited for this transformation. The Pradhan Mantri Jan Dhan Yojana has expanded financial inclusion, opening over 55 crore bank accounts. Aadhaar, India’s digital identity program, now covers more than 142 crore people, streamlining welfare distribution via Direct Benefit Transfers, which saved Rs 3.48 lakh crore by March 2023.
Healthcare equity has also seen significant gains through Ayushman Bharat, which offers Rs 5 lakh health coverage per family and has issued over 41 crore cards. Programmes like the Stand-Up India scheme promote entrepreneurship among SC/ST communities and women, while the PM Vishwakarma Yojana supports artisans with training and financial aid. The PMGKAY food security scheme has provided benefits to over 80 crore citizens.
India’s performance places it ahead of countries such as China (Gini of 35.7) and the United States (41.8), marking it as a standout in global efforts to reduce income disparity.
