India among world’s most equal societies: World Bank report

A latest World Bank report places India among the world’s most equal societies ranking it the 4^th most-equal country globally ahead of the G20 and G7 nations.

According to the report, behind this success is a consistent policy focus on:

• Reducing poverty;
• Expanding financial access, and;
• Delivering welfare support directly to those who need it the most.

According to the report, extreme poverty dropped to 2.3 % in 2022-23 with 171 million people moving out of extreme poverty between 2011 and 2023 considering these figures to be important and impressive considering that India is a vast and diverse country with many areas till recently being considered unreachable. The figures, according to it best reflect:

• The economic growth achieved, and;
• How the various policies of the government are designed to ensure poverty is erased from India.

India’s global standing in equality

According to the latest World Bank data, India’s Gini Index stands at 25.5 placing it among the most equal countries in the world in relative terms. India’s score is much lower than China’s 35.7 and 41.8 for the United States, as also more equal than G7 and G20 countries many considered advanced economies.

India falls into the moderately low inequality category which includes Gini scores between 25 and 30, only a fraction away from joining the low inequality group including countries:

• Slovak Republic with a score of 24.1;
• Slovenia 24.3, and;
• Belarus 24.4.

India also has a better score than all other 167 countries for whom the World Bank has released data.

Globally, only 30 countries fall into the moderately low inequality category including several European countries with strong welfare systems, including:

• Iceland,
• Norway,
• Finland, and;
• Belgium, also featuring growing economies like:
• Poland, and;
• wealthy nations like the United Arab Emirates.

India’s journey towards a more equal society is reflected in its Gini Index over the years from being 28.8 in 2011 reaching 25.5 in 2022, this steady shift showing that India has made consistent progress in combining economic growth with social equity.

The Gini Index

The Gini Index is a simple yet powerful way to understand:

• How equally income, wealth or consumption is distributed across households or individuals in a country.
• It ranges in value from 0 to 100.
• A score of 0 means perfect equality.
• A score of 100 means absolute inequality.
• The higher the Gini Index, the more unequal the country.

Poverty reduction driving greater equality

According to the report 171 million Indians have been lifted out of extreme poverty over the past decade. The share of people living on less than 2.15 US dollars a day, which was the global threshold for extreme poverty till June 2025 fell sharply from 16.2 % in 2011-12 to just 2.3 % in 2022-23.

Key government initiatives

India’s progress towards greater income equality is the result of various government initiatives aimed at:

• Improving financial access;
• Delivering welfare benefits efficiently, and;
• Supporting vulnerable and underrepresented groups.

Together, these Schemes have helped:

• Bridge gaps;
• Boost livelihoods, and;
• Ensuring growth reaches all sections of the society.

Some of the key government schemes and initiatives include:

• PM Jan Dhan Yojana with 55.69 crore people holding Jan Dhan Accounts giving them direct access to government benefits & formal banking services.
• Aadhaar enables the creation of a unique digital identity for residents across the country with more than 142 crore Aadhar cards being issued forming the backbone of welfare delivery ensuring that benefits reach the right person at the right time through reliable authentication.
• Direct Benefit Transfer (DBT) streamlining welfare payments reducing leakages and delays with the cumulative savings having reached Rs.3.48 lakh crore as of March 2023.
• Ayushman Bharat Scheme provides health coverage of up to Rs.5 lakh per family per year. As of July 3, 2025, with over 41.34 crore Ayushman Cards having been issued as of July 3, 2025, the scheme being supported by more than 32,000 empanelled hospitals across the country. In addition, the government has also launched the Ayushman Vay Vandana scheme to extend this coverage to all citizens aged 70 and above regardless of income. Under the Ayushman Bharat Digital Mission over 79 crore health accounts have been created to link individuals to digital health services.
• Stand-Up India Scheme providing loans between Rs.10 lakh and Rs.1 crore to SC/ST and women entrepreneurs for setting up greenfield enterprises with more than 2.75 lakh applications having been sanctioned with total Rs. 62,807.46 crore as of July 3, 2025.
• Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) continues to serve the most vulnerable sections of society with the scheme having reached 80.67 crore beneficiaries offering free food grains and ensuring that no one is left behind during times of crisis as of December 2024.
• PM Vishwakarma Yojana supporting traditional artisans and craftspeople with collateral-free loans, toolkits, digital training, and marketing support with 29.95 lakh individuals having registered under the scheme helping preserve livelihoods and promote inclusive growth across rural and semi-urban areas as of July 3, 2025.

Epilogue

India’s path to income equality has been steady and focussed. Its Gini Index score reflects real change in people’s lives with more families now having access to:

• Food;
• Banking;
• Healthcare, and;
• Jobs.

India has shown its ability to balance economic reform with strong social protection through targeted schemes like Jan Dhan, DBT, and Ayushman helping close the long-standing gaps, at the same time helping people create wealth and secure livelihoods on their own terms through programmes such as:

• Stand-Up India and;
• PM Vishwakarma Yojana.

As the world looks for models that combine growth with fairness, India has successfully demonstrated that equality and development are not separate goals when supported by sound policy and inclusive intent they move forward together.

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