WB Ranks India 4th Most Equal Country Globally with Gini Index of 25.5

According to the World Bank ,India is the fourth most equal society in the world in terms of wealth,with a score of 25.5 on the Gini index in 2022. The Slovak Republic had the lowest inequality in the world, with a score of 24.1, while South Africa was the most unequal country in the world, with a score of 63.0.

The low score of India on the Gini index has been attributed to the government's focus on poverty reduction and the targeted welfare scheme for the poor and the underprivileged,

The notable achievement of India was highlighted in the World Bank’s “The Spring 2025 Poverty and Equity Brief” report.

India is currently the world’s fourth-largest economy, based on nominal gross domestic product (GDP), with the United States being the largest, followed by China and Germany.

What is the Gini Index?

The Gini Index was developed by Italian Statistician Corrado Gini in 1912. The index determines a country’s level of income inequality by measuring the distribution of income and wealth across its population.

The coefficient of the Gini index ranges from 0 (0%) to 1 (100%), with 0 representing perfect equality in the society and 1 representing perfect inequality in the society..

An increasing Gini Index score indicates growing income inequality in the country.

Performance of India

• According to the World Bank, India was the fourth most equitable country in the world after Slovakia, Slovenia and Belarus.
• India's score on the Gini index declined from 28.8 in 2011 to 25.5 in 2022. 
• India has a better score than China (35.7), Germany( 31.4), the United Kingdom (34.4) and the United States (41.8).
• Amongst the 167 countries,India has been grouped into the “moderately low” inequality category.

Reason for Low Score on the Gini Index

A low score on the Gini Index indicates that there has been a redistribution of wealth in the country in favour of the poor. The government’s focused intervention in reducing poverty and targeted welfare programmes like the PM Jan Dhan Yojana, Pradhan Mantri Garib Kalyan Anna Yojana, Ayushman Bharat Yojana, etc., have helped in the redistribution of wealth and reduced inequality in the country. This was acknowledged by the  World Bank in its “Spring 2025 Poverty and Equity Brief” report. According to the report: 

• 17.1 crore or 171 million Indians were lifted out of extreme poverty between 2011 and 2023. 
• Extreme poverty in the country fell from 16.2 % in 2011-12 to 2.3 % in 2023. People earning less than $2.15 per day are called extremely poor.
• According to the World Bank’s revised definition of the extreme poverty line of $3.00 per day, the Indian population living below the poverty line in 2022-23 was 5.3%.

About World Bank's Gini Index

The World Bank’s Gini Index has classified the countries into five categories - Low Equality, Moderately Low Inequality, Moderately High Inequality, Highly Unequal and Very High Inequality.

Low Equality -(3 countries) Ginni Score upto 24.5

1. Slovak Republic - 24.1
2. Slovenia- 24.3
3. Belarus - 24.4

Moderately Low Inequality (30 countries), Gini Score 25.5 to 29.9.

• India is in the 4th position, and it includes countries like Ukraine, UAE, Finland, Norway, etc.

Moderately High Inequality: (87 Countries), Gini Score -30.0 to 39.9

• It includes the United Kingdom, Sweden, France, Bangladesh, Italy, etc

Highly Unequal-( 32 countries) , Gini Score 40.1 to 44.9

• It includes countries such as Turkey, Ghana, Argentina, the United States, and Peru, among others.

Very High Inequality(19 countries) , Gini Score 45.1 to 63

• It includes Guyana, Namibia, Brazil, and Zimbabwe, with South Africa at the bottom.