India, already celebrated as the world’s fourth-largest economy, has achieved another remarkable milestone—becoming one of the world’s most equal societies. According to the World Bank, India’s Gini Index stands at 25.5, placing it as the fourth most equal country globally, behind only the Slovak Republic, Slovenia, and Belarus. This performance not only surpasses regional peers like China, which holds a Gini score of 35.7, but also positions India ahead of every G7 and G20 nation in terms of income equality.
This development is a significant feat for a country of India’s size and complexity, underlining the country’s progress in ensuring its economic growth benefits a broad cross-section of its population. The Gini Index, which ranges from 0 (perfect equality) to 100 (extreme inequality), offers a clear snapshot of how evenly income is distributed within a country. India’s current standing marks a steady improvement from a Gini score of 28.8 in 2011 to 25.5 in 2022, signalling meaningful gains in bridging income gaps over the past decade.
A key driver behind this success has been India’s sustained focus on reducing poverty. The World Bank’s Spring 2025 Poverty and Equity Brief revealed that 171 million Indians were lifted out of extreme poverty between 2011 and 2023. The share of the population living on less than $2.15 per day—a standard measure for extreme poverty—has plunged from 16.2% in 2011-12 to just 2.3% in 2022-23. Under the World Bank’s revised extreme poverty line of $3.00 per day, the rate for 2022-23 stands at a modest 5.3%.
India has emerged as the world’s fourth most equal society, with a Gini Index of 25.5, outpacing all G7 and G20 nations, according to the World Bank.
This remarkable progress reflects significant poverty reduction and targeted government welfare schemes.
As India balances rapid economic growth with social equity, its model offers lessons for the world.
| Country | Gini Index |
|---|---|
| Slovak Republic | 24.1 |
| Slovenia | 24.3 |
| Belarus | 24.4 |
| India | 25.5 |
| China | 35.7 |
| United States | 41.8 |
| Germany (G7) | 31.4 (approx.) |
| United Kingdom (G7) | 34.4 (approx.) |
| France (G7) | 32.4 (approx.) |
| Japan (G7) | 32.9 (approx.) |
Experts attribute this progress to a series of targeted government initiatives designed to enhance financial inclusion, improve access to healthcare, and strengthen social safety nets. The Pradhan Mantri Jan Dhan Yojana has been pivotal in bringing over 55.69 crore Indians into the formal banking system as of June 2025, facilitating direct benefit transfers and reducing leakages in welfare distribution.
Meanwhile, Aadhaar has become the backbone of India’s digital identity infrastructure, with more than 142 crore Aadhaar cards issued by July 2025. This system ensures precise delivery of government services and subsidies. The Direct Benefit Transfer (DBT) mechanism has further streamlined welfare payments, leading to cumulative savings of ₹3.48 lakh crore as of March 2023.
Healthcare initiatives have also played a vital role. The Ayushman Bharat scheme, which offers health coverage of up to ₹5 lakh per family annually, has issued over 41.34 crore Ayushman Cards and is supported by a robust network of more than 32,000 hospitals. Notably, the scheme has expanded to include all citizens aged 70 and above under the Ayushman Vay Vandana initiative, ensuring elderly citizens receive critical health support irrespective of income.
Additionally, schemes like Stand-Up India and the PM Vishwakarma Yojana have empowered marginalized communities through entrepreneurship and skill development. Stand-Up India has facilitated loans worth over ₹62,807 crore to SC/ST and women entrepreneurs, while nearly 30 lakh artisans have registered under the PM Vishwakarma Yojana for financial and marketing support.
India’s journey to achieving such a low Gini score underscores that economic growth and social equity can go hand in hand. As nations worldwide grapple with widening inequality, India’s experience offers a blueprint for blending economic reforms with robust social protection systems to create a fairer society.
With global attention turning toward inclusive development models, India’s example stands out—proving that it’s possible to grow economically while ensuring prosperity is more evenly shared.
