New Delhi : India has emerged as one of the world’s most equal societies, securing the fourth spot globally with a Gini Index score of 25.5, according to the World Bank’s Spring 2025 Poverty and Equity Brief. Trailing only the Slovak Republic (24.1), Slovenia (24.3), and Belarus (24.4), India has surpassed major economies, including all G7 and G20 nations, such as China (35.7) and the United States (41.8). This remarkable achievement underscores India’s progress in balancing economic growth with social equity, driven by targeted government initiatives and robust poverty reduction efforts. However, the opposition Congress party has labeled the government’s claims as “fraudulent” and “intellectually dishonest,” sparking a heated debate over the interpretation of the World Bank’s data.
Understanding the Gini Index
The Gini Index, a globally recognized measure of income distribution, ranges from 0 (perfect equality) to 100 (absolute inequality). It quantifies how income, wealth, or consumption is distributed across a population, with a lower score indicating a more equitable society. Graphically, the Gini Index is derived from the Lorenz curve, which plots the cumulative percentage of total income received against the cumulative number of recipients, starting with the poorest individuals or households. A perfectly equal distribution aligns with a diagonal line, while the Lorenz curve shows the actual distribution. The Gini Index measures the gap between these two lines as a percentage of the maximum area under the line, providing a clear metric for income inequality.
India’s Gini Index of 25.5 places it in the “moderately low” inequality category (scores between 25 and 30), just a fraction away from the “low inequality” group that includes the Slovak Republic, Slovenia, and Belarus. Out of 167 countries assessed by the World Bank, only these three nations outperform India, making it more equal than advanced economies like Iceland, Norway, Finland, Belgium, Poland, and the United Arab Emirates, all of which fall within the same “moderately low” inequality bracket.
India’s Journey Toward Equality
India’s Gini Index has shown steady improvement, dropping from 28.8 in 2011-12 to 25.5 in 2022-23. This decline reflects a consistent effort to combine economic growth with equitable resource distribution. The World Bank report highlights that India’s success is closely tied to its significant strides in poverty reduction. Between 2011 and 2023, 171 million Indians were lifted out of extreme poverty, with the poverty rate plummeting from 16.2% to 2.3% based on the global poverty threshold of $2.15 per day. Under the revised threshold of $3.00 per day, the poverty rate for 2022-23 adjusts to 5.3%, further underscoring India’s progress in alleviating economic hardship.
The Ministry of Social Welfare attributes this achievement to a policy focus on reducing poverty, expanding financial access, and delivering welfare support directly to those in need. “This reflects how India’s economic progress is being shared more evenly across its population,” the ministry stated in a press release issued by the Press Information Bureau (PIB) on July 5, 2025.
Key Government Initiatives Driving Inclusion
Several flagship government schemes have played a pivotal role in fostering greater equality and reducing poverty. These initiatives target financial inclusion, healthcare, entrepreneurship, and food security, ensuring that economic growth benefits reach the most vulnerable sections of society. Below is a detailed overview of the key programs credited for India’s improved equality metrics:
- PM Jan Dhan Yojana: Launched to enhance financial inclusion, this scheme has facilitated the opening of over 556.9 million bank accounts as of June 25, 2025. By providing access to banking services, it has empowered millions to participate in the formal economy and receive government benefits directly.
- Aadhaar: India’s digital identity system has issued over 1,420 million Aadhaar cards, covering more than 142 crore individuals as of July 3, 2025. Aadhaar has streamlined welfare delivery through Direct Benefit Transfers (DBT), which have saved ₹3.48 lakh crore by March 2023 by reducing leakages in welfare schemes.
- Direct Benefit Transfer (DBT): By leveraging Aadhaar, DBT has revolutionized welfare delivery, ensuring that subsidies and benefits reach the intended recipients efficiently. The cumulative savings of ₹3.48 trillion highlight the program’s effectiveness in minimizing corruption and inefficiencies.
- Ayushman Bharat: This healthcare initiative provides up to ₹5 lakh in annual health coverage per family, with over 413.4 million Ayushman Cards issued and more than 32,000 hospitals empanelled. The Ayushman Vay Vandana scheme extends similar coverage to all citizens aged 70 and above, regardless of income. Additionally, the Ayushman Bharat Digital Mission has created 79 crore health accounts, linking individuals to digital health services.
- Stand-Up India: Aimed at promoting entrepreneurship among marginalized groups, this scheme has sanctioned over ₹62,800 crore in loans to 275,000 SC/ST and women entrepreneurs, fostering inclusive economic participation.
- PM Garib Kalyan Anna Yojana (PMGKAY): Launched during the COVID-19 pandemic, this food security scheme has provided free food grains to 806.7 million beneficiaries as of December 2024, ensuring nutritional support during crises.
- PM Vishwakarma Yojana: This initiative supports traditional artisans and craftspeople by offering financial aid, toolkits, and marketing support. As of July 3, 2025, nearly 29.95 lakh beneficiaries have been registered under the scheme.
These programs have collectively contributed to closing long-standing socio-economic gaps, ensuring that India’s economic progress benefits all sections of society. “India’s Gini Index of 25.5 is not just a statistic—it represents real change in people’s lives,” the Ministry of Social Welfare emphasized.
Controversy and Criticism
Despite the World Bank’s findings, the opposition Congress party has strongly contested the government’s claims, labeling them as “fraudulent” and “intellectually dishonest.” Congress general secretary Jairam Ramesh argued that the Modi government manipulated data by comparing consumption inequality in India with income inequality in other countries, which he described as a violation of basic economic analysis principles. “A comparison between two entities requires us to use the same metric to judge them,” Ramesh stated, highlighting that consumption inequality is typically lower than income inequality because the wealthy save a significant portion of their income.
Ramesh claimed that when income equality is measured consistently, India ranks poorly, placing 176th out of 216 countries in 2019, making it the 40th most unequal society globally. He further argued that income and wealth inequality have worsened under the Modi government, driven by policies favoring the elite and cronyism. “The PIB must clarify the origins of this press release and retract it immediately,” Ramesh demanded, accusing the government of “doctoring data” to obscure the reality of deepening inequalities.
The Congress also pointed out that the World Bank’s April 2025 report had raised concerns about the quality and availability of data, as well as the use of outdated benchmarks to measure poverty. In a statement issued on July 6, 2025, the party warned that the government’s interpretation relied on selective data, undermining the report’s credibility.
India’s Global Standing
India’s Gini Index score of 25.5 positions it ahead of every G7 and G20 nation, including advanced economies like China and the United States. The “moderately low” inequality category, which includes only 30 countries globally, features European nations with robust welfare systems, such as Iceland, Norway, Finland, and Belgium, alongside growing economies like Poland and wealthy nations like the UAE. India’s proximity to the “low inequality” group underscores its potential to join the ranks of the Slovak Republic, Slovenia, and Belarus with further progress.
The World Bank report attributes India’s success to a balanced approach that combines economic reforms with social protection. By addressing poverty, improving financial access, and ensuring efficient welfare delivery, India has set a global example of inclusive growth. The report also notes that India’s achievements are particularly significant given its vast size and diversity, making it a standout model for combining growth with fairness.
Conclusion
India’s ranking as the fourth most equal society globally, as per the World Bank’s Spring 2025 Poverty and Equity Brief, marks a significant milestone in its journey toward equitable growth. With a Gini Index of 25.5, down from 28.8 in 2011, India has demonstrated remarkable progress in reducing poverty and ensuring that economic gains are shared more evenly across its population. Government initiatives like PM Jan Dhan Yojana, Aadhaar, Ayushman Bharat, and PMGKAY have been instrumental in driving this transformation, lifting 171 million people out of extreme poverty and fostering inclusive development.
However, the controversy surrounding the government’s interpretation of the data highlights the complexities of measuring inequality and the need for transparent, consistent methodologies. As India continues its path toward greater equality, addressing these criticisms and ensuring robust data quality will be crucial for sustaining public trust and achieving long-term socio-economic goals. For now, India’s achievement stands as a testament to its potential to lead the world in balancing growth with fairness.
Frequently Asked Questions (FAQs)
1. What does India’s Gini Index score of 25.5 signify, and how does it compare globally?
The Gini Index measures income distribution, with 0 indicating perfect equality and 100 representing absolute inequality. India’s score of 25.5, as reported in the World Bank’s Spring 2025 Poverty and Equity Brief, places it in the “moderately low” inequality category (25–30), ranking it fourth globally behind the Slovak Republic (24.1), Slovenia (24.3), and Belarus (24.4). This score is better than all G7 and G20 nations, including China (35.7) and the United States (41.8), and reflects India’s progress in equitable income distribution compared to 167 countries assessed.
2. How has India reduced poverty, and what role does this play in its equality ranking?
India has lifted 171 million people out of extreme poverty between 2011 and 2023, reducing the poverty rate from 16.2% to 2.3% based on the $2.15 per day threshold. Under the revised $3.00 per day threshold, the 2022-23 poverty rate is 5.3%. This significant poverty reduction, driven by government initiatives like PM Jan Dhan Yojana, Aadhaar, and Ayushman Bharat, has contributed to a more equitable income distribution, as reflected in India’s improved Gini Index score of 25.5, down from 28.8 in 2011.
3. What government schemes have contributed to India’s improved income equality?
Several flagship programs have driven India’s progress in income equality:
PM Vishwakarma Yojana: Aids 29.95 lakh artisans with loans and training.
PM Jan Dhan Yojana: Over 556.9 million bank accounts opened for financial inclusion.
Aadhaar: Over 1,420 million digital identities issued, enabling efficient welfare delivery via Direct Benefit Transfers (DBT), saving ₹3.48 trillion by March 2023.
Ayushman Bharat: Provides ₹5 lakh health coverage per family, with over 413.4 million cards issued.
Stand-Up India: ₹62,800 crore in loans for SC/ST and women entrepreneurs.
PM Garib Kalyan Anna Yojana (PMGKAY): Supports 806.7 million with free food grains.
4. Why has the Congress party criticized the government’s claims about India’s equality ranking?
The Congress party has called the government’s assertion that India is among the world’s most equal societies “fraudulent” and “intellectually dishonest.” They argue that the government used consumption inequality for India while comparing it to income inequality in other countries, which skews results since consumption inequality is typically lower. Congress claims that when income inequality is measured consistently, India ranks 176th out of 216 countries (2019 data), making it the 40th most unequal society. They also allege that income and wealth inequality have worsened under the Modi government.
5. How does the Gini Index work, and what is the Lorenz curve?
The Gini Index quantifies income or consumption distribution by measuring the gap between a perfectly equal distribution and the actual distribution, expressed as a percentage. It is derived from the Lorenz curve, which plots the cumulative percentage of total income received against the cumulative number of recipients, starting with the poorest. A diagonal line represents perfect equality, while the Lorenz curve shows the actual distribution. The larger the gap between these lines, the higher the inequality, with India’s score of 25.5 indicating a relatively equitable distribution compared to global standards.
