India has made major progress in reducing poverty and income inequality. According to the World Bank’s Spring 2025 Poverty and Equity Brief, India is now ranked as the 4th most equal country in the world.
This ranking is based on the Gini Index, a popular tool used to measure income distribution in a country. The lower the Gini score, the more equal the society. India scored 25.5, which shows strong income equality. This is a big improvement from its 2011 score of 28.8.
India now ranks just behind Slovakia, Slovenia, and Belarus. It has also performed better than several rich nations. For comparison, China has a Gini score of 35.7 and the United States has a much higher score of 41.8. All G7 and G20 countries are ranked lower than India on income equality.
Huge Drop in Poverty
The World Bank also highlighted how India has reduced poverty sharply in recent years. Between 2011 and 2023, around 171 million people came out of extreme poverty. The poverty rate dropped from 16.2% to just 2.3%, based on the global extreme poverty line of $2.15 per day.
This is seen as a major achievement for a country of India’s size and population.
Government Policies Helped
India’s Ministry of Social Welfare said that this success is due to strong government efforts. Key policies included poverty-reduction programs, financial inclusion schemes, and direct welfare support for the poor.
Efforts like digital payments, rural employment schemes, subsidized housing, and food security programs helped the poor improve their living conditions.
With these efforts, India has shown that targeted welfare and growth-focused policies can bring real change. Experts believe that if this trend continues, India can become a model for other developing countries looking to reduce inequality.
The World Bank’s report is a proud moment for the country, showing that economic growth combined with inclusive policies can lead to a fairer society.
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