TestCloud
Prep • Practice • Perform
Log In

India Ranks 4th Globally in Income Equality with a Gini Index of 25.5 in World Bank’s 2025 Report.

National | Dated: 31 Jul 2025

In its World Bank Spring 2025 Poverty & Equity Brief, the World Bank (WB) reported that India achieved a Gini Index of 25.5 for the Fiscal Year 2022–23, securing the rank of the fourth most equal country globally, slightly behind the Slovak Republic, Slovenia, and Belarus, which feature even lower inequality scores of 24.1, 24.3, and 24.4 respectively.

🎯 Key Highlights:

  • - The Gini Index, also known as the Gini coefficient, is a statistical measure formulated in 1912 by Italian statistician Corrado Gini, to assess income or wealth inequality within a population. This metric ranges from 0 (indicating perfect equality) to 100 (indicating complete inequality). A lower Gini value reflects a more equitable distribution of income across households or individuals.
  • - India’s Gini score of 25.5 places it in the “moderately low inequality” category among 167 countries covered in the report. The country outperformed all G7 and G20 economies, including China (35.7), USA (41.8), United Kingdom (34.4), and Germany (~31.4), making India among the few emerging economies to maintain such low disparity levels.
  • - A major driver of India’s improved Gini index has been rapid poverty reduction. Between 2011 and 2023, approximately 171 million Indians moved out of extreme poverty, defined by the global threshold of USD 2.15/day. The share of people living below this level fell from 16.2% in 2011–12 to just 2.3% in 2022–23; under the updated threshold of USD 3.00/day, this rate stood at 5.3%.

💡 Other Important Facts:

  • (i) India’s progress in equity is supported by flagship schemes that expanded financial inclusion and welfare reach—most notably the Pradhan Mantri Jan Dhan Yojana (PMJDY), which opened more than 55 crore bank accounts, the Aadhaar-based Direct Benefit Transfer (DBT) system saving nearly ₹3.48 lakh crore in leakages, and the Ayushman Bharat health programme covering over 410 million health cards, with ₹5 lakh annual health cover per family.
  • (ii) Despite commendable gains, India remains vulnerable to persistent structural inequality. According to external assessments, the top 1% holds over 40% of national wealth, while demographic gaps—such as unequal access to healthcare, education, and digital infrastructure—continue to influence long-term income outcomes. Policymakers are urged to further strengthen inclusive services and taxation frameworks.
  • (iii) India’s fourth-place ranking in global income equality is a notable achievement, especially for a large and diverse nation. The improvement from a Gini of 28.8 in 2011–12 to 25.5 in 2022–23 illustrates the success of its poverty-alleviation and social equity policies. Going forward, sustained focus on inclusive growth, targeted social welfare policies, and closing opportunity gaps is essential to prevent any reverse slide in equity.

📚 Test Your Knowledge:

Which country recently ranked as the 4th most equal society in the world according to the World Bank’s 2025 Gini Index data?

Correct Answer: India

🚀 Quick Recap: