News Brief

India Emerges As Fourth Most Equal Societies Globally, Ahead off China, US and All G7, G20 Nations: Report

Arjun Brij

Jul 06, 2025, 01:00 PM | Updated 02:08 PM IST


Indian national flag (Representative image)
Indian national flag (Representative image)

India has achieved significant progress in reducing inequality, emerging as the fourth-most equal country in the world, according to a new report by the World Bank.

Between 2011-12 and 2022-23, inequality in India has declined substantially, alongside a sharp fall in extreme poverty levels.

“India’s Gini Index stands at 25.5, making it the fourth most equal country in the world, after the Slovak Republic, Slovenia and Belarus,” a government statement said, citing World Bank data.

The Gini Index measures how evenly income, wealth, or consumption is spread across a country’s population, ranging from 0 (perfect equality) to 100 (complete inequality).

India’s figure of 25.5 is notably lower than China’s 35.7 and far below 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.

The country is now categorised under “moderately low” inequality, with just a slight margin separating it from joining the “low inequality” bracket.

Globally, just 30 countries fall into the “moderately low” inequality category. including several European countries with strong welfare systems.

These include Iceland, Norway, Finland, and Belgium. It also features growing economies like Poland and wealthy nations like the United Arab Emirates.

The drop in extreme poverty has been another standout achievement.

As per the World Bank, the proportion of Indians living on less than $2.15 per day fell dramatically from 16.2 per cent in 2011-12 to 2.3 per cent in 2022-23.

This translates to 171 million people lifted out of extreme poverty over the past decade.

Under World Bank’s revised extreme poverty threshold of $3.00 per day, the 2022-23 poverty rate would be adjusted to 5.3 percent, the release said.

The government credits this progress to a suite of targeted welfare schemes.

“India’s path to income equality has been steady and focused. The Gini Index of 25.5 is not just a number. It reflects real change in people’s lives. More families now have access to food, banking, healthcare, and jobs,” the release said.

According to the government, initiatives such as PM Jan Dhan Yojana, Direct Benefit Transfer, and Ayushman Bharat have helped in bridging longstanding gaps and promoting inclusive growth.

Also Read: BRICS Summit Faces Diplomatic Balancing Act Over Terrorism, Gaza Conflict And Tariffs

Arjun Brij is an Editorial Associate at Swarajya. He tweets at @arjun_brij


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