India Among the World’s Leaders in Income Equality
India has emerged as a standout performer in narrowing income disparities, now ranking fourth worldwide in income equality with a Gini Index of 25.5. This places the country ahead of major global economies like the United States and China, underscoring significant strides in fair wealth distribution.
Understanding the Gini Index and India's Remarkable Progress
The Gini Index measures income distribution on a scale from 0 (perfect equality) to 100 (extreme inequality). India's current score of 25.5 marks a notable improvement from 28.8 in 2011, signaling more inclusive economic growth over the past decade.
Countries with better scores include the Slovak Republic, Slovenia, and Belarus; however, India’s position ahead of all G7 and G20 nations is particularly remarkable for its size and complexity.
Sharp Decline in Poverty Levels
Between 2011 and 2023, India lifted roughly 171 million people out of extreme poverty. The poverty rate plunged from 16.2% to just 2.3%, assessed against the global poverty threshold of $2.15 per day. This dramatic reduction testifies to effective poverty alleviation policies driving tangible change for millions.
Policies Fueling Financial Inclusion and Welfare
Government-led initiatives have been central to this transformation:
- PM Jan Dhan Yojana: Over 550 million bank accounts opened, broadening access to formal banking.
- Aadhaar Digital ID: Now covering over 1.42 billion people, it streamlines Direct Benefit Transfers and has saved approximately Rs 3.48 lakh crore through efficient welfare delivery.
- Ayushman Bharat: Providing health insurance coverage up to Rs 5 lakh per family, already benefiting more than 410 million individuals.
- Support Programs: Initiatives like Stand-Up India assist marginalized entrepreneurs, while the PM Vishwakarma Yojana empowers artisans through loans and skill development.
- Food Security: The PMGKAY scheme has supported food needs for over 800 million people.
Looking Ahead: A Blueprint for Inclusive Growth
India’s advancing income equality and impressive poverty reduction reflect a sustained focus on social welfare, financial access, and targeted support for vulnerable communities. These gains highlight how strategic policies can promote equitable growth even in large, diverse economies.
As these efforts continue, India’s example offers valuable insights into balancing rapid development with fairness and social inclusion.
