India has become one of the ‘world’s most equal societies’ when it comes to income equality, according to the latest data released by the World Bank. It has surpassed the United States, China, the G7 and G20 countries to rank fourth in the world. India currently has a Gini Index of 25.5, and stands behind only three nations – the Slovak Republic, Slovenia and Belarus.
The Ministry of Social Welfare issued a statement that said, “This shows how India’s growth is being shared more fairly among its people. The government has focused on reducing poverty, increasing financial access, and giving welfare help directly to those who need it.”
What is the Gini Index?
The Gini Index is a key indicator of income distribution within a country, where a score of 0 represents perfect equality and 100 signifies absolute inequality. India’s latest Gini Index score reflects a more equitable income distribution than that of several developed economies, including China (35.7), the United States (41.8), and all G7 and G20 nations. This marks a notable shift from 2011, when India’s score stood at 28.8, indicating a consistent trend towards greater income parity over the past decade.
As per the latest data, over the same 12 years, India has moved out of 171 million individuals in extreme poverty. World Bank data also suggests that the extreme poverty rate has lowered significantly from 16.2% to 2.3%; shared at the Spring 2025 Poverty and Equity Brief.
ANI reported that government schemes contributing towards the same included PM Jan Dhan Yojana and Ayushman Bharat, among others.
India’s key welfare schemes have significantly boosted financial inclusion and social support. Over 55 crore bank accounts have been opened under PM Jan Dhan Yojana. Aadhaar now covers 142 crore people, enabling Direct Benefit Transfers that saved Rs 3.48 lakh crore by March 2023.
Ayushman Bharat offers free health coverage of Rs 5 lakh per family, with 41 crore health cards issued. Stand-Up India supports SC-ST and women entrepreneurs with loans, while PM Vishwakarma Yojana aids artisans through training and credit. PMGKAY ensures food security for over 80 crore citizens through free food distribution.
