India Ranks High on Income Equality
The World Bank reports that India’s income distribution is now among the world’s most equal, ranking above all G7 and G20 countries in the Gini index.
Gini Index Details
- India’s current score is 25.5, classified as “moderately low inequality.”
- This places India ahead of countries like China (+10 points) and the United States (+15 points).
- Only a few nations such as Slovakia, Slovenia, and Belarus have slightly better figures.
Poverty Reduction Success
- Between 2011 and 2023, about 171 million people escaped extreme poverty.
- The rate dropped from 16.2% to 2.3%.
- Lower-middle-income poverty (under $3.65/day) also declined notably.
Why This Matters
- Strong gains in poverty reduction helped narrow income inequality.
- India is close to joining the elite “low inequality” club (Gini <25).
- Despite progress, challenges remain such as urban-rural disparities, gender gaps, and ensuring inclusive growth.
The World Bank applauds India’s progress in reducing poverty and inequality, but advises careful policy to address remaining disparities and sustain inclusive development.