India Becomes 4th 'Most Equal' Country In World, Leaves Behind US, China: World Bank Report
There are three countries ahead of India on the Gini Index, which include Slovak Republic, Slovenia and Belarus.
India became the fourth-most equal country globally, effected by the significant decrease in inequality between 2011-12 and 2022-23, as per a World Bank report.
This comes on the back of a sharp decrease in extreme poverty in the country, which dipped from 16.2 per cent in 2011-12 to 2.3 per cent in 2022-23, an official release said, quoting the World Bank data.
The three countries having better Gini Index scores, which is a measure of equality, are the Slovak Republic, Slovenia, and Belarus – placing India in a much better spot than countries like China, the US, and the UK.
'…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," the statement said.
The Gini Index is used to measure how evenly income, wealth, or spending is shared among people or households in a country. The score ranges from 0 to 100. A score of 0 means everyone has the same amount—complete equality. A score of 100 means one person has everything while everyone else has nothing—complete inequality. So, the higher the Gini Index, the more unequal the country is.
While China's index stands at 35.7, the US' score is 41.8.
The Work Bank report consisted of data from 167 countries, in which India was placed in the 'moderately low" inequality category. This group includes countries with Gini scores between 25 and 30. India's score is very close to moving into the 'low inequality" group, indicating that income and wealth are fairly evenly distributed in comparison to many other countries.
The government said that the reduction in inequality took place due to various initiatives and schemes launched during the last decade.
According to the World Bank report, 171 million Indians have been lifted out of extreme poverty over the last decade.
The percentage of people in India living on less than USD 2.15 a day—the global line for extreme poverty until June 2025—dropped significantly from 16.2% in 2011–12 to just 2.3% in 2022–23.
Worldwide, only 30 countries are in the 'moderately low" inequality category. Many of them are European nations with strong welfare systems, such as Iceland, Norway, Finland, and Belgium. This group also includes fast-growing economies like Poland and rich countries like the United Arab Emirates.
The report said that India's progress toward a more equal society can be seen in its Gini Index over the years. The index was 28.8 in 2011 and improved to 25.5 in 2022.
'This steady improvement shows that India has been able to combine economic growth with greater fairness and social equality," the release stated.
The report mentioned that schemes like the PM Jan Dhan Yojana, Direct Benefit Transfer (DBT), and Stand-Up India have played a key role in helping India move toward greater income equality.
(With PTI inputs)
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