In April 2025, World Bank (WB) released its report titled ‘Spring 2025 Poverty & Equity Brief’, ranking India as the world’s 4th-most equal country with a Gini Index score of 25.5 (2022-23), compared to 28.8 (2011-12).
- India has been ranked just behind Slovak Republic (24.1), Slovenia(24.3) and Belarus (24.4) which are placed in the low inequality group.
- India performed well compared to all Group of Seven (G7) and Group of twenty (G20) nations, including the United Kingdom (UK) (32.4), China (35.7), and the United States of America (USA) (41.8).
About Gini Index:
i.The Gini Index, also known as the Gini coefficient, measures income or wealth inequality on a scale from 0 (complete equality) to 100 (complete inequality).
ii.Lower values indicate a more equal distribution of income.
iii.The index uses Lorenz curve analysis to compare the actual distribution of income against a scenario of perfect equality.
Key Findings from the Report:
i.As per the WB’s report which has covered the data of 167 countries, only 30 countries including India, have been placed into the ‘moderately low’ inequality category, which includes Gini Index scores between 25 and 30.
- India is just 0.4 points away from entering the “low inequality” group, defined as countries with a Gini Index below 25.
- India has been placed in this category along with various European countries such as Iceland, Norway, Finland, and Belgium and also with some of the growing and wealthy economies like: Poland, the United Arab Emirates (UAE).
ii.Between 2011 and 2023, the share of people living on less than USD 2.15 per day, which was the global threshold for extreme poverty till June 2025, dropped drastically from 16.2% to 2.3%, lifting 171 million Indians out of extreme poverty.
- Under the revised extreme-poverty line of USD 3.00 per day, poverty rate in 2022–23 stands at 5.3%.
iii.Between 2011 and 2023, Rural poverty of India fell from 18.4% to 2.8%, while urban poverty dropped from 10.7% to 1.1%.
- States like Uttar Pradesh (UP), Maharashtra, Bihar, West Bengal (WB), and Madhya Pradesh (MP) contributed to nearly two-thirds of the overall reduction in poverty in 2022-23.
GoI-led Key Initiatives and Schemes for India’s Improvement in Gini Index:
Various flagship schemes of Government of India (GoI) have contributed significantly to improving financial access, welfare delivery, and entrepreneurship among marginalized groups in India:
i.Pradhan Mantri Jan Dhan Yojana (PMJDY): It is a financial inclusion scheme which has been an integral part of India’s social equity push. As per GoI’s official data, over 55.69 crore people opened Jan Dhan accounts (as of June 25, 2025), which gives them direct access to government benefits and formal banking services.
ii.Aadhaar and Digital Identity: As of July 03 2025, over 142 crore Aadhaar cards have been issued by the GoI.
iii.Direct Benefit Transfer (DBT): As of March 2023, Rs 3.48 lakh crore reached in cumulative savings, reducing leakages in distributing the benefits of welfare schemes.
iv.Ayushman Bharat (AB): The scheme launched in 2018, offers health coverage of maximum Rs 5 lakh per family per year. As of July 3, 2025, more than 41.34 crore Ayushman cards have been issued. The scheme is supported by over 32, 000 empanelled hospitals nationwide.
- In 2024, the GoI had launched Ayushman Bharat: Vaya Vandana Card (AB-VVC) which extends the coverage of AB to all citizens aged 70 and above, regardless of income.
v.Stand-Up India: Launched in 2016, aims to promote inclusive entrepreneurship in India. The scheme offers loans between Rs 10 lakh and Rs 1 crore to Scheduled Caste (SC)/ Scheduled Tribe (ST) and women entrepreneurs for setting –up greenfield enterprises.
- As of July 3, 2025, GoI has sanctioned over 2.75 lakh applications, with total funding of Rs 62,807.46 crore.
vi.Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY): As of December 2024, over 80.67 crore beneficiaries received free food grains under PMGKAY, ensuring food security during crises.
vii.PM Vishwakarma Yojana: The scheme launched in 2023, supports traditional artisans and craftspeople with collateral-free loans, toolkits, digital training, and marketing support.
- As of July 3, 2025, approximately 30 lakh individuals have registered under the scheme.
About World Bank (WB):
President- Ajay Banga
Headquarters-Washington, DC, the United States of America (USA)
Established-1944
