As per the World Bank report, India has become one the ‘world’s most equal societies,’ surpassing the United States, China, the G7 and G20 countries and rank fourth in the world. India 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.”
The Gini Index or Gini, is one of those statistical indicators showing how income or wealth can be distributed among a population. It ranges from 0 to 100 (or 0 to 1); 0 means perfect equality (everyone has the same income), and 100 (or 1) stands for perfect inequality (only one person has all the income).
India's Gini Index was registered at 25.5, an extremely low figure, indicating a highly equitable income distribution. Thus it backs the claim that India is among the most equal societies in the world, above several developed nations.
The smaller the value of Gini, the greater the success of policies, which means that welfare programs and financial inclusion initiatives that aim to reduce the income gap between the rich and the poor are working.
India is, one great step ahead in the income equality race due to its shaped governmental policies aimed at alleviating poverty, improving access to finance, and providing welfare support.
According to the World Bank's Spring 2025 Poverty and Equity Brief, between 2011 and 2023, about a staggering 171 million people had been pulled out of extreme poverty, pushing down the rate of extreme poverty from 16.2% in 2011-12 to a mere 2.3% in 2022-23. Transformation was set in motion by a few key central-government-driven changes.
PM Jan Dhan Yojana: Promoted financial inclusion, opening over 550 million bank accounts, particularly in rural areas.
Aadhaar Digital Identity: All 1.42 billion inhabitants having accepted it, giving welfare systems an automatic makeover.
Direct Benefit Transfers (DBT): The entire welfare system has been streamlined with savings of roughly $42 billion as of March 2023.
The successful quantum leap that India has achieved in reducing income inequalities stands as a testimony to efforts geared toward inclusive development.India is a country. Its targeted policy initiatives have significantly reduced extreme poverty.
These policies also brought about greater financial penetration. This serves as testimony. It shows that a sustained focus from the government can translate into improved societal well-being. This trajectory makes India one of the examples in the world on growth with equity.