The World Bank has ranked India fourth globally in terms of income equality, based on a Gini Index of 25.5. A lower Gini score indicates more equal income distribution. India’s position is ahead of all G7 and G20 countries, including Germany, the United States, and China.
The Gini Index is a statistical measure of income distribution within a population. A score of 0 indicates perfect equality (everyone has the same income), while 100 implies perfect inequality (one person has all the income). India’s score of 25.5 in 2022 shows considerable equality compared to nations with scores above 30 or 40.
India’s Gini Index has improved from 28.8 in 2011 to 25.5 in 2022, demonstrating narrowing income disparities over the last decade.
The World Bank attributes India’s performance to:
Over 55.69 crore Jan Dhan accounts have been opened, providing poor and rural populations access to banking and enabling smoother transfer of subsidies and welfare benefits.
Aadhaar, now covering 142 crore Indians, acts as a universal ID. It enables accurate targeting for subsidies, pensions, and services, reducing corruption and duplication.
DBT has ensured that government funds reach intended beneficiaries directly into their bank accounts. As of March 2023, DBT has saved ₹3.48 lakh crore by cutting leakages.
Ayushman Bharat provides health insurance of ₹5 lakh per family, with over 41.34 crore cards issued. The Ayushman Vay Vandana expansion ensures coverage for citizens aged 70 and above, promoting health security for the elderly.
Stand-Up India promotes entrepreneurship among SC/ST and women by offering easy loans (₹62,807 crore so far). PM Vishwakarma Yojana supports artisans with funding and training, with nearly 30 lakh beneficiaries by mid-2025.
India has shown that rapid economic growth can be aligned with social equity. Its model of targeted public service delivery, digital inclusion, and welfare reforms is seen as a viable approach for other developing nations facing inequality.
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