India has been ranked as the fourth most equal country in terms of income distribution, according to the latest report released by the World Bank. The data shows India’s Gini Index standing at 25.5 — a figure that places it just behind the Slovak Republic, Slovenia, and Belarus.

The Gini Index is a measure used internationally to assess income inequality. A score closer to 0 indicates greater equality. India’s score has improved from 28.8 in 2011 to 25.5 in the latest update, marking steady progress over the past decade.

The Ministry of Social Welfare noted that the improvement reflects years of sustained focus on poverty reduction, expanding access to banking, and ensuring government benefits reach the intended population.

The World Bank’s Spring 2025 Poverty and Equity Brief reported that 171 million Indians moved out of extreme poverty between 2011 and 2023. During this period, the poverty rate fell from 16.2 per cent to 2.3 per cent, based on the international benchmark of USD 2.15 per person per day.

Pradhan Mantri Jan Dhan Yojana: More than 55 crore bank accounts opened to increase financial access

Aadhaar: India’s digital identification system now covers over 142 crore individuals, enabling targeted distribution of subsidies

Direct Benefit Transfers (DBT): Helped streamline welfare payments and saved Rs 3.48 lakh crore by March 2023

Ayushman Bharat: Issued over 41 crore health cards offering Rs 5 lakh coverage per family

Stand-Up India and PM Vishwakarma Yojana: Support for entrepreneurship among SC/ST communities, women, and traditional artisans

Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY): Free food grain distribution benefiting over 80 crore people

India’s performance in income equality now places it ahead of many developed nations, including China, the United States, and all G7 and G20 members.