India ranks 4th globally in income equality, shows World Bank data | India News
NEW DELHI: India ranks fourth globally in income equality after the Slovak Republic, Slovenia and Belarus, making it one of the most equal societies, latest World Bank data has shown.“According to the latest World Bank data, India’s Gini Index stands at 25.5. This places India among the most equal countries in the world in relative terms. India’s score is much lower than China’s 35.7 and far lower than the United States, which stands at 41.8. It is also more equal than every G7 and G20 country, many of which are considered advanced economies,” said a govt note citing data from the multilateral agency.It said that India falls into the “moderately low” inequality category, which includes Gini scores between 25 and 30, and is only a fraction away from joining the “low inequality” group, which includes countries like the Slovak Republic with a score of 24.1, Slovenia at 24.3, and Belarus at 24.4.“Apart from these three, India has a better score than all of the other 167 countries for which the World Bank has released data,” said the note from the social welfare department.Globally, just 30 countries fall into the “moderately low” inequality category. including several European countries with strong welfare systems. These include Iceland, Norway, Finland, and Belgium. It also includes 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. The index was measured at 28.8 in 2011, and reached 25.5 in 2022. This steady shift shows that India has made consistent progress in combining economic growth with social equity,” said the note.Stating that India’s strong standing on the Gini Index is not a coincidence, the note said it is closely linked to the country’s sustained success in reducing poverty across both rural and urban regions..According to a World Bank 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. Under World Bank’s revised extreme poverty threshold of $3.00 per day, the 2022-23 poverty rate would be adjusted to 5.3%.The Gini Index measures 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 one person has all the income, wealth or consumption and others have none, hence absolute inequality. The higher the Gini Index the more unequal the country, the statement said detailing the ranking methodology.
