India ranks 4th globally in income equality, ahead of G7 and G20 nations. Here's what the World Bank Gini report says

India has emerged as the fourth country in income equality globally after the Slovak Republic, Slovenia, and Belarus, securing this position as the most economically equal society in the world. This remarkable achievement is particularly notable because of the vast population and diverse demographics of India. The position of India is the product of sustained economic growth paired with targeted social policies which focus on reducing poverty and expanding financial access, according to a report by the World Bank.

"According to the latest World Bank data, India's Gini Index stands at 25.5. This places India among the most equal countries in the world in relative terms. India's score is much lower than China's 35.7 and far lower than the United States, which stands at 41.8. It is also more equal than every G7 and G20 country, many of which are considered advanced economies," said a government press note citing data from the World Bank report.

The report indicated that India is placed in the “moderately low” inequality bracket, with a Gini Index score between 25 and 30, just short of entering the “low inequality” category, which includes nations like the Slovak Republic (24.1), Slovenia (24.3), and Belarus (24.4).

"Apart from these three, India has a better score than all of the other 167 countries for which the World Bank has released data," said the government note.

Only 30 countries in the world fall under the “moderately low” inequality group, which includes many European nations with strong welfare systems, such as Iceland, Norway, Finland, and Belgium. It also features emerging economies like Poland and affluent countries like the UAE.

"India's journey towards a more equal society is reflected in its Gini Index over the years. The index was measured at 28.8 in 2011, and reached 25.5 in 2022. This steady shift shows that India has made consistent progress in combining economic growth with social equity," the note added.

Emphasising that India's strong performance on the Gini Index is not a coincidence, the report further added that it reflects the consistent effort of the country in reducing poverty across both rural and urban regions.

What is the Gini index?

The Gini Index signify how income, wealth, or consumption is distributed within a population. A score of 0 indicates complete equality, whereas 100 denotes total inequality, where a single person possesses all resources. Lower scores reflect a fairer distribution. India is placed in the moderately low” inequality range (between 25 and 30) with a Gini score of 25.5 and is close to entering the “low inequality” category.