In a major achievement on the global development landscape, India has secured the 4th rank in income equality, according to a new report from the World Bank, as cited by the Press Information Bureau (PIB) on July 7, 2025. The report, part of the World Bank’s Spring 2025 Poverty and Equity Brief, highlights India’s Gini Index score of 25.5, marking a notable advancement in equitable income distribution.

The Gini Index is a widely recognized measure of income inequality, where 0 denotes perfect equality and 100 indicates absolute inequality. With a score of 25.5, India ranks just behind the Slovak Republic (24.1), Slovenia (24.3), and Belarus (24.4), placing it firmly in the “moderately low” inequality bracket (25–30), and on the cusp of joining the elite “low inequality” category.

This development marks a significant improvement from India’s Gini score of 28.8 in 2011, signaling how the country has effectively combined economic growth with inclusive policy frameworks to create a more equitable society.

A Decade of Progress: From Inequality to Equity

The World Bank’s analysis paints a promising picture of India’s poverty reduction and income equity efforts over the past decade. According to the report:

• 171 million Indians exited extreme poverty during this period.

• The proportion of the population living on less than Rs. 183.96 (US$ 2.15) a day fell from 16.2% in 2011–12 to just 2.3% in 2022–23.

• Using the revised poverty line of Rs. 256.69 (US$ 3.00) per day, poverty now stands at 5.3%.

This sharp decline in poverty rates is not only an indicator of inclusive economic progress but also underscores the effectiveness of large-scale government interventions in improving livelihoods and welfare access for millions of Indians.

The Role of Government Initiatives

India’s movement towards income equality can be directly attributed to a string of targeted welfare schemes, digital infrastructure rollouts, and inclusive financial tools implemented by the government.

Some of the notable initiatives that have had a transformational impact include:

1. Jan Dhan Yojana

Launched to increase financial inclusion, the scheme has led to the opening of over 556.9 million bank accounts, many of them for previously unbanked rural populations. This has given direct financial access and enabled millions to receive government subsidies without leakage.

2. Aadhaar Digital ID

The Aadhaar system has provided more than 1.42 billion unique digital IDs, empowering citizens with a verifiable identity, crucial for accessing welfare schemes, financial services, and employment opportunities.

3. Direct Benefit Transfer (DBT)

A cornerstone of India’s welfare delivery system, the DBT framework has successfully transferred subsidies directly into the bank accounts of beneficiaries, saving Rs. 3.48 trillion (US$ 40.60 billion) by reducing fraud, duplication, and administrative overheads.

4. Ayushman Bharat

India’s flagship healthcare assurance scheme has helped provide free treatment to millions of low-income individuals, reducing out-of-pocket health expenses, one of the biggest drivers of poverty.

5. PM Garib Kalyan Anna Yojana

This food security initiative provided free ration to over 800 million people during the COVID-19 pandemic and beyond, ensuring basic nutritional needs were met during economic disruptions.

6. Stand-Up India and PM Vishwakarma Yojana

These schemes have promoted entrepreneurship among women, SC/ST communities, and traditional artisans, thereby enabling income generation in sectors often overlooked by formal financial institutions.

Why This Ranking Matters

India’s 4th position in the World Bank’s global income equality rankings is not just symbolic. It sends a powerful signal that inclusive growth models can succeed even in large, diverse, and developing economies. It positions India as a case study for:

• Balancing economic growth with redistribution

• Leveraging technology for efficient welfare delivery

• Designing scalable, impactful public policies that directly benefit the marginalized

Such achievements are particularly notable given India’s population size, demographic complexity, and regional economic disparities.

Global Context of Income Equality

To place this in context, the top-ranking countries for income equality include:

• Slovak Republic – Gini score of 24.1

• Slovenia – 24.3

• Belarus – 24.4

• India – 25.5

India’s ranking among these European nations, which have long-standing social welfare systems, showcases the effectiveness of its targeted schemes, especially considering its per capita income and developmental challenges.

Policy Continuity and Future Outlook

With a Gini score nearing the “low inequality” category, India’s future progress will depend on sustaining current policies, expanding access, and ensuring efficiency in implementation. The government’s ongoing focus on:

• Financial inclusion

• Skill development

• Universal healthcare

• Digital governance
  will continue to be critical in reducing residual poverty and improving income equality.

Conclusion

India’s 4th global rank in income equality, backed by a Gini Index score of 25.5, is a remarkable milestone that reflects the country’s sustained efforts to ensure inclusive and equitable growth. From Jan Dhan bank accounts and Aadhaar coverage to Ayushman Bharat and DBT transfers, every policy intervention has helped uplift millions and reduce economic disparities.

As highlighted in the World Bank’s Spring 2025 Poverty and Equity Brief, India’s success story is driven by its data-backed, scalable welfare mechanisms, and a commitment to ensuring no one is left behind. Moving forward, India’s journey can serve as a model for other developing nations striving to achieve economic equity through innovation, governance, and inclusive policies.

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