India Ranks Among the Most Equal Societies Globally: A Model for Inclusive Growth

India ranks fourth globally in income equality, with a Gini Index of 25.5, surpassing major economies like China and the US. This achievement reflects dedicated policies focused on poverty reduction, financial inclusion, and welfare programs. Between 2011 and 2023, 171 million Indians escaped extreme poverty, with the poverty rate dropping from 16.2% to 2.3%. Key initiatives like Jan Dhan Yojana, Aadhaar, Ayushman Bharat, and food security schemes have driven this progress, positioning India as a global model for inclusive growth.

India has emerged as a global leader in income equality, securing the fourth spot worldwide according to the latest data from the World Bank. With a Gini Index score of 25.5, the country is only outperformed by the Slovak Republic, Slovenia, and Belarus. This places India ahead of major economies like China (35.7), the United States (41.8), and all G7 and G20 nations, making it a standout example of equitable economic growth.

The Gini Index, a widely used indicator of income distribution, measures inequality on a scale from 0 (perfect equality) to 100 (maximum inequality). India's strong performance reflects its commitment to fostering inclusive growth and reducing income disparities.

A Decade of Progress in Equity

India’s Gini Index has shown consistent improvement, dropping from 28.8 in 2011 to its current score of 25.5. This progress is closely linked to the country’s focused policies aimed at poverty alleviation and equitable prosperity. Over the years, millions of Indians have benefited from targeted government initiatives designed to uplift marginalized communities.

The World Bank’s Spring 2025 Poverty and Equity Brief highlighted a remarkable achievement: between 2011 and 2023, approximately 171 million Indians transitioned out of extreme poverty. During the same period, the national poverty rate plummeted from 16.2% to a mere 2.3%, based on the global poverty threshold of $2.15 per day.

Policies Driving Change

India’s success in addressing inequality can be traced to forward-thinking policies and robust welfare programs. A release from the Social Welfare Department attributes this achievement to sustained efforts in reducing poverty, expanding financial inclusion, and streamlining welfare delivery systems.

Key government initiatives have played a pivotal role:

• PM Jan Dhan Yojana: This financial inclusion program has enabled over 55 crore Indians to open bank accounts, granting them access to formal banking services.

• Aadhaar Digital ID: Covering more than 142 crore citizens, India’s digital identity system has revolutionized welfare distribution through Direct Benefit Transfers (DBTs), saving an estimated ₹3.48 lakh crore by March 2023.

• Ayushman Bharat: With health coverage of up to ₹5 lakh, over 41 crore health cards have been issued under this scheme, ensuring better access to healthcare for millions.

• Stand-Up India and PM Vishwakarma Yojana: These programs support SC/ST entrepreneurs, women business owners, and artisans through loans and skill development initiatives.

• PMGKAY (Pradhan Mantri Garib Kalyan Anna Yojana): This food security program has provided essential support to over 80 crore people, ensuring no one goes hungry.

  
  

A Model for the World

India’s achievements in income equality and poverty reduction underscore the importance of inclusive policies and direct welfare delivery. By ensuring that economic progress benefits all sections of society, the country has set an example for other nations striving to reduce inequality.

As India continues to prioritize equity and inclusivity, its progress serves as a testament to the power of focused policy-making and grassroots implementation. The journey from widespread poverty to becoming one of the most equal societies globally is not just a national success story but also a beacon of hope for the world.