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India has now become the world’s 4th most equal country, says a new World Bank report which points to a dramatic decline in income inequality and poverty over the last 10 years. The country ranks behind the Slovak Republic, Slovenia, and Belarus, as per the Gini Index, a standard benchmark of economic inequality.
The Gini Index, a number between 0 (perfect equality) and 100 (absolute inequality), shows India’s rating to have shifted from 28.8 in 2011 to 25.5 in 2022. It thus positions India far ahead of large economies such as China (35.7), the United Kingdom, and the United States (41.8), with India being the most equal of large, heterogeneous nations.
The World Bank report also observes a sharp reduction of extreme poverty in India. The proportion of people living on less than $2.15 a day reduced from 16.2% in 2011-12 to merely 2.3% in 2022-23. More than 171 million Indians have been removed from extreme poverty between the 2 periods.
World Bank report reveals India’s economic growth
This consistent transformation reveals that India has continued to make steady strides in reconciling economic growth with social equity,” an official release stated, citing World Bank figures.
Following this, the Indian government credited this historic progress to a series of focused social welfare programmes undertaken in the last decade. Programs like the Pradhan Mantri Jan Dhan Yojana, Stand-Up India, Direct Benefit Transfer (DBT) and Ayushman Bharat have worked to bridge income differentials. These also enhance access to banking, health, and to overall livelihoods.
Such programs have ensured that economic growth has fed into improved lives for people in all segments of society,” the statement further clarified. “India’s income equality drive has been consistent and targeted. The Gini Index of 25.5 is not an abstraction, it indicates real change in individuals’ lives.”
World Bank report: India to join rare “low inequality” group
Out of 167 countries studied by the World Bank, only 30 fall under the “moderately low inequality” category (Gini scores between 25 and 30), that includes countries with strong welfare systems like Norway, Belgium, Finland and Iceland. India now stands on the cusp of joining the rare “low inequality” group.
According to the report, what differentiates India is its balance of economic reforms with strong social protection. While other big economies are still struggling with growing disparities in wealth, India’s inclusive growth model is being regarded as a successful template by other developing countries.
