India is classified as falling into the “moderately low” inequality category, with a Gini score between 25 and 30. The country is only a fraction away from joining the “low inequality” group, which includes nations like the Slovak Republic, Slovenia, and Belarus.
India’s Gini score is better than that of the other 167 countries for which the World Bank has released data.
Globally, there are only 30 countries that fall into the “moderately low” inequality category. This group includes European countries with strong welfare systems such as Iceland, Norway, Finland, and Belgium. It also features growing economies like Poland and wealthy nations like the United Arab Emirates.
India’s progress towards a more equal society can be seen in its Gini Index over the years. The index was 28.8 in 2011 and has decreased to 25.5 in 2022. This consistent improvement reflects India’s ability to combine economic growth with social equity.
Poverty reduction driving greater equality
India’s strong ranking on the Gini Index is attributed to its success in reducing poverty in both rural and urban areas. The World Bank’s Spring 2025 Poverty and Equity Brief highlights India’s achievement in lifting 171 million people out of extreme poverty over the past decade.
The percentage of people living on less than $2.15 a day decreased from 16.2 percent in 2011-12 to 2.3 percent in 2022-23. Adjusted to the World Bank’s revised extreme poverty threshold of $3.00 per day, the poverty rate for 2022-23 would be 5.3 percent.
Key government initiatives
India’s progress towards achieving greater income equality through targeted government initiatives/programmes aimed at improving financial access, delivering welfare benefits efficiently, and supporting vulnerable and underrepresented groups.
The government initiatives that have transformed India include the PM Jan Dhan Yojana, expanding financial inclusion, Aadhaar, covering over 142 crore individuals for welfare delivery, and Ayushman Bharat, providing health coverage to families.
The Stand-Up India scheme supports marginalised entrepreneurs, the PM Vishwakarma Yojana supports artisans, and PMGKAY benefits over 80 crore citizens through food security.
Their combined efforts have bridged divides, improved lives, and fostered inclusive growth.
Conclusion
A Gini coefficient of 25.5 shows that India has made considerable progress in reducing income inequality, leading to tangible improvements in the lives of its citizens.
Economic reforms and social initiatives (like DBT, Jan Dhan, etc) have contributed to this success. India shines as an example and shows how, with good policy and inclusiveness, equality and growth may be pursued together.