Consider the following statements:
Statement-I: India is the fourth most equal country with Gini Index 25.5.
Statement-II: Increase in Gini Index represents growing equality.

Which one of the following is correct in respect of the above statements?
(a) Both Statement-I and Statement-II are correct and Statement-II explains Statement-I
(b) Both Statement-I and Statement-II are correct, but Statement-II does not explain Statement-I
(c) Statement-I is correct, but Statement-II is incorrect
(d) Statement-I is incorrect, but Statement-II is correct

Question

Consider the following statements:
Statement-I: India is the fourth most equal country with Gini Index 25.5.
Statement-II: Increase in Gini Index represents growing equality.

Which one of the following is correct in respect of the above statements?
(a) Both Statement-I and Statement-II are correct and Statement-II explains Statement-I
(b) Both Statement-I and Statement-II are correct, but Statement-II does not explain Statement-I
(c) Statement-I is correct, but Statement-II is incorrect
(d) Statement-I is incorrect, but Statement-II is correct

ONLiNE UPSC · Accepted Answer

According to the World Bank, India, the world&rsquo;s fourth-largest economy, is also the fourth most equal country with a Gini Index of 25.5.

Statement-I is correct: According to recent reports citing the World Bank, India is ranked as the world&rsquo;s fourth most equal country with a Gini Index of 25.5, behind only the Slovak Republic, Slovenia, and Belarus. The Gini Index measures income or wealth distribution, where a lower value indicates greater equality.

Statement-II is not correct: The Gini Index is a simple yet powerful way to understand 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.

Income Inequality

Gini Index

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M Question 1	⏱ 0
Consider the following statements: Statement-I: India is the fourth most equal country with Gini Index 25.5. Statement-II: Increase in Gini Index represents growing equality. Which one of the following is correct in respect of the above statements? (a) Both Statement-I and Statement-II are correct and Statement-II explains Statement-I (b) Both Statement-I and Statement-II are correct, but Statement-II does not explain Statement-I (c) Statement-I is correct, but Statement-II is incorrect (d) Statement-I is incorrect, but Statement-II is correct