India is Fourth ‘Most Equal’ Country, Says World Bank Report

SOCIAL ISSUES – Inequality & Poverty

Context

According to the World Bank’s “Spring 2025 Poverty and Equity Brief”, India has seen a substantial decline in inequality between 2011–12 and 2022–23. It is now ranked as the 4th most equal country globally, reflecting the effectiveness of targeted social welfare programs and inclusive development strategies.

Inequality Decline in India

Global Ranking (Based on Gini Index):
1. Slovak Republic
2. Slovenia
3. Belarus
4. India 🏅
Attribution of Progress:

- Credited to government schemes, poverty alleviation programs, and socio-economic reforms over the last decade.

Understanding the Gini Index

What It Measures:
- Income, wealth, or consumption inequality across a population.
Scale:
- 0 = Perfect Equality
- 100 = Perfect Inequality
India’s Current Gini Index (2022–23):
- 25.5
- Categorized as “Moderately Low Inequality” (Range: 25–30)
- On the verge of being reclassified as “Low Inequality” (<25)
Global Comparisons:
- China: 35.7
- USA: 41.8

Indicates that India is significantly more equal in income distribution than many developed nations.

Trends in Income Distribution & Poverty

Decline in Extreme Poverty:
- From 16.2% (2011–12) ➝ 2.3% (2022–23)
- Shows alignment with UN Sustainable Development Goal (SDG) 1 – No Poverty

Policy Implications

Improved Welfare Targeting:
- Enhanced Gini Index reflects effective implementation of welfare schemes (e.g., DBT, PM-KISAN, Ujjwala Yojana).
Inclusive Growth:
- Points to reduction in income disparities across rural and urban populations.
- Suggests broad-based economic development rather than growth concentrated in a few sectors or classes.

Conclusion

India’s improvement in global equality rankings demonstrates the success of inclusive policies, targeted poverty reduction programs, and expanding social safety nets. This achievement not only highlights developmental progress but also strengthens India’s position in global equity and human development metrics.