India becomes fourth most equal country globally:World Bank

India has emerged as the fourth-most equal country in the world, according to a new World Bank report that highlights a significant decline in income inequality and extreme poverty over the past decade. The report attributes this progress to sustained economic growth combined with targeted welfare initiatives.
The report reveals that India’s Gini Index—a global measure of income distribution—stood at 25.5 in 2022-23, placing the country just behind the Slovak Republic, Slovenia, and Belarus. The Gini Index ranges from 0 (perfect equality) to 100 (perfect inequality), and India's score places it in the "moderately low inequality" category.
“This is a significant improvement from a Gini Index of 28.8 in 2011-12,” a government statement noted, citing the World Bank data. India now ranks ahead of major global economies such as China (35.7), the United Kingdom (36.6), and the United States (41.8).
Sharp Drop in Poverty Levels
In addition to improved income equality, the report highlights a dramatic fall in extreme poverty. The share of Indians living on less than $2.15 per day dropped from 16.2% in 2011-12 to just 2.3% in 2022-23. The World Bank estimates that over 171 million Indians have been lifted out of extreme poverty during this period.
“This steady shift shows that India has made consistent progress in combining economic growth with social equity,” the release said.
Government Schemes Driving Inclusivity
The government attributed to achievement to its various policy interventions and welfare schemes for driving the positive change. Key initiatives cited include:
•Pradhan Mantri Jan Dhan Yojana: Improving financial inclusion
•Direct Benefit Transfer (DBT): Ensuring welfare reaches intended beneficiaries
•Ayushman Bharat: Expanding healthcare access
•Stand-Up India and PM Vishwakarma Yojana: Supporting self-employment and entrepreneurship
“These targeted interventions have helped bridge long-standing socio-economic gaps and ensured that growth reaches all sections of society,” the statement added.
A Model of Balanced Development
India’s approach of balancing economic reforms with robust social protection mechanisms has been noted as a global example. “What sets India apart is its ability to combine structural growth with inclusive intent,” the release emphasized.Globally, only about 30 nations fall into the moderately low inequality bracket, which includes countries with well-developed welfare systems like Iceland, Norway, Finland, and Belgium.As countries worldwide grapple with rising inequality, India’s experience offers a potential roadmap. “Equality and development are not separate goals. With the right policies, they can move forward together,” official release stated.

(Business Correspondent)