India ranks 4th globally in income equality, ahead of US, China: World Bank

New Delhi, Jul 5: India has emerged as one of the most income-equal countries in the world, ranking fourth globally with a Gini Index score of 25.5, according to the latest World Bank data as reported by TOI. This places India ahead of major economies including China (35.7), the United States (41.8), and all G7 and G20 nations. Only the Slovak Republic, Slovenia, and Belarus rank higher in income equality.

The Gini Index measures income distribution on a scale from 0 (perfect equality) to 100 (maximum inequality). India’s score reflects a notable improvement from 28.8 in 2011, underscoring the country’s progress in promoting equitable economic growth.

The World Bank’s Spring 2025 Poverty and Equity Brief highlighted that 171 million Indians were lifted out of extreme poverty between 2011 and 2023. Over the same period, India’s poverty rate fell dramatically from 16.2% to 2.3%, based on the global benchmark of $2.15 per day. Government initiatives have played a key role in this transformation. Programmes such as PM Jan Dhan Yojana expanded financial inclusion through over 55 crore bank accounts. The Aadhaar digital ID system now covers more than 142 crore people, enabling efficient welfare distribution through Direct Benefit Transfers and generating savings of Rs 3.48 lakh crore by March 2023. Other flagship schemes, including Ayushman Bharat, which provides Rs 5 lakh in health cover to beneficiaries, and Stand-Up India, aimed at supporting SC/ST and women entrepreneurs, have also contributed to narrowing inequalities. The PMGKAY food programme has supported more than 80 crore people, further reinforcing economic security at the grassroots level, Toi and several other national media reported.