India ranks fourth globally in income equality, ahead of China and US

India has emerged as the fourth most equal country in terms of income distribution, according to the World Bank’s Spring 2025 Poverty and Equity Brief.

With a Gini index of 25.5, India ranks only behind the Slovak Republic (24.1), Slovenia (24.3), and Belarus (24.4), and stands ahead of China (35.7), the United States (41.8), and every G7 and G20 nation.

This improved equality follows a steady decline from a Gini score of 28.8 in 2011, marking a consistent shift towards more equitable income distribution.

A critical factor was a drastic fall in extreme poverty—from 16.2% in 2011–12 to 2.3% in 2022–23 (measured at US $2.15/day), with 171 million individuals lifted out of poverty.

Even under the updated poverty line of US $3/day, poverty remains low at approximately 5.3%.

The World Bank report cites India’s success to ongoing poverty-alleviation and inclusion measures, such as the PM Jan Dhan Yojana, which has led to 556 million bank accounts improving financial inclusion; Aadhaar and DBT, with over 142 crore digital IDs enabling direct benefit transfers and saving an estimated ₹3.48 lakh crore; and Ayushman Bharat health coverage, which now serves over 41 crore beneficiaries across 32,000 empanelled hospitals.

Schemes like Stand-Up India and PM Vishwakarma Yojana have further supported entrepreneurship and livelihoods among marginalized groups.

India’s achievement demonstrates how rapid growth can be paired with equity, in contrast to rising inequality trends seen in most large economies.

Experts note that India’s blend of digital governance and direct welfare may serve as a model for addressing global inequality.