India has emerged as one of the leading countries in terms of income equality, securing the fourth position globally in the latest World Bank rankings. With a Gini index of 25.5, India trails only the Slovak Republic, Slovenia, and Belarus in achieving a more equitable distribution of income.
This ranking reflects the equitable sharing of economic progress across the population. According to the Ministry of Social Welfare, the country’s success can be attributed to sustained efforts in reducing poverty, enhancing financial accessibility, and providing direct welfare support to the most vulnerable sections of society.
India’s Gini index is now better than that of several major economies, including China (35.7) and the United States (41.8), as well as all G7 and G20 countries. One of the most significant contributors to this achievement has been the country’s progress in poverty alleviation.
Between 2011 and 2023, approximately 171 million Indians were lifted out of extreme poverty. The poverty rate, measured by the global threshold of $2.15 per day, dropped dramatically from 16.2 percent to just 2.3 percent during this period.
The World Bank report highlights a range of government-led initiatives that have laid the groundwork for this transformation. The Pradhan Mantri Jan Dhan Yojana has played a key role in expanding financial inclusion, with over 55 crore bank accounts opened under the scheme. Aadhaar coverage has reached over 142 crore individuals, enabling more efficient and targeted delivery of welfare services.
The Direct Benefit Transfer system has streamlined welfare disbursement, resulting in a cumulative net savings of Rs 3.48 lakh crore by March 2023. In the healthcare sector, Ayushman Bharat has provided health insurance coverage of up to Rs 5 lakh per family, benefiting over 41 crore people.
Food security has also improved significantly through the Pradhan Mantri Garib Kalyan Anna Yojana, which has provided support to more than 80 crore citizens.
Schemes such as Stand-Up India and the PM Vishwakarma Yojana have played a vital role in uplifting marginalized communities by promoting entrepreneurship and skill development. Stand-Up India has extended loans exceeding Rs 62,807 crore to SC/ST and women entrepreneurs, while nearly 30 lakh artisans have enrolled under the PM Vishwakarma Yojana to access financial aid and marketing assistance.
As India pursues rapid economic growth while ensuring social equity, its development model presents valuable lessons for the global community.
The Gini index, a key indicator of income distribution, ranges from zero (indicating perfect equality) to 100 (indicating maximum inequality). India’s current score of 25.5 marks a notable shift towards equitable growth and reflects the impact of targeted welfare and inclusive economic policies.
