India Ranked Among World’s Most Equal Countries by World Bank

India has been named the fourth most equal country in the world by the World Bank, based on the Gini Index for 2025. With a score of 25.5, India has achieved a strong level of income equality, ahead of many developed nations. This is a big step for a large and diverse country, and shows how government policies and poverty reduction efforts are creating real change.

Understanding the Gini Index and India’s Rank

The Gini Index measures how fairly income is shared in a country. A score of 0 means perfect equality, while 100 means complete inequality. India’s score of 25.5 makes it one of the most equal countries in the world, just behind Slovak Republic (24.1), Slovenia (24.3), and Belarus (24.4).

India’s ranking is better than China (35.7), the United States (41.8), and all G7 and G20 nations. Back in 2011, India’s Gini score was 28.8, so this improvement over a decade shows steady progress. The World Bank released this data in its July 2025 report, covering 167 countries.

Big Drop in Poverty Rates

India’s improved equality is closely linked to falling poverty levels. According to the World Bank’s Spring 2025 Poverty and Equity Brief, the number of people in extreme poverty dropped from 16.2% in 2011–12 to just 2.3% in 2022–23. That means about 171 million Indians have come out of poverty in the last 12 years.

If we use the new global poverty line of $3 per day, the poverty rate for 2022–23 is still low at 5.3%. These figures highlight the success of India’s long-term efforts to improve lives across cities and villages.

Key Government Schemes That Helped

Several government programmes have helped reduce poverty and increase income equality. These include,

• PM Jan Dhan Yojana: Over 55.69 crore people now have bank accounts, which allows direct transfer of benefits.
• Aadhaar & DBT (Direct Benefit Transfer): Over 142 crore Aadhaar cards issued, helping ensure benefits reach the right people. DBT has saved the government ₹3.48 lakh crore so far.
• Ayushman Bharat: This health scheme has issued over 41.34 crore cards, offering free treatment up to ₹5 lakh per family per year. A special scheme also supports citizens aged 70+, no matter their income.
• Stand-Up India: This scheme gives loans to SC/ST and women entrepreneurs, with ₹62,807 crore already funded.
• PM Vishwakarma Yojana: A total of 29.95 lakh artisans have registered for tools, training, and credit support.
• PMGKAY (Free Food Grains Scheme): Reached 80.67 crore people, ensuring food security even during tough times like COVID-19.

These programmes focus on financial inclusion, health, food security, and job creation—helping bridge gaps across society.