Context

World Bank has placed India among world’s Most Equal Societies. According to the World Bank, India’s Gini Index stands at 25.5, making it the fourth most equal country in the world, after the Slovak Republic, Slovenia and Belarus. The Gini Index is a simple yet powerful way to understand how income, wealth or consumption is equally distributed across households or individuals in a country.

Key Highlights

• Gini Index of 25.5: India’s Gini Index, a widely used measure of income inequality, stands at 25.5 for the year 2022–23. This places India in the “moderately low inequality” category and makes it the fourth-most equal country globally among 167 nations. For context, a Gini Index of 0 indicates perfect equality, while 100 represents absolute inequality.
• Comparison with Other Countries: India’s score is significantly better than major economies such as China (35.7), United States (41.8), and United Kingdom. Only a small number of countries, mostly in Europe, have similar or lower inequality levels.
• Sharp Poverty Reduction: The report shows a dramatic fall in extreme poverty, measured by the share of the population living on less than USD 2.15 per day. This figure dropped from 16.2% in 2011–12 to just 2.3% in 2022–23.
• 171 million lifted from poverty: Over the last decade, around 171 million people have exited extreme poverty, according to the World Bank data.
• Progress over Time: India’s Gini Index has improved steadily, declining from 28.8 in 2011 to 25.5 in 2022, suggesting a consistent trend towards more equal income distribution.
• Government Initiatives Credited: The government attributes this progress to several targeted schemes aimed at improving financial access and livelihood security. Notable programmes include:

• Pradhan Mantri Jan Dhan Yojana (PM Jan Dhan Yojana):
– Launched in 2014, this scheme aimed to bring every citizen into the formal banking system.
– Under the scheme, millions of bank accounts have been opened with the provision of zero-balance accounts.
– It significantly improved access to banking services, especially for rural populations, women, and socially disadvantaged groups.
– By linking bank accounts with Aadhaar and mobile numbers, it laid the foundation of the JAM Trinity (Jan Dhan–Aadhaar–Mobile), enabling direct transfer of government benefits to beneficiaries.

• Direct Benefit Transfer (DBT):
– DBT transformed the traditional subsidy system, which suffered from middlemen and leakages.
– Benefits under LPG subsidy, scholarships, MGNREGA wages, old-age pensions, and various other schemes are now transferred directly into beneficiaries’ bank accounts.
– It enhanced transparency, reduced corruption, and improved the efficiency of public expenditure.
– It also expanded the scope of social security, ensuring timely assistance to the poor and marginalized.

• Ayushman Bharat Yojana (PM-JAY):
– This is the world’s largest public health insurance scheme, launched in 2018.
– It provides annual health insurance coverage of ₹5 lakh per family.
– The scheme has enabled millions to access free treatment, significantly reducing out-of-pocket expenditure on healthcare.
– Through empanelled public and private hospitals, rural and urban poor have received quality medical services, thereby reducing economic disparity in healthcare access.

• Stand-Up India:
– The Stand-Up India scheme aims to provide bank loans (₹10 lakh to ₹1 crore) to SC/ST and women entrepreneurs to promote self-employment.
– It has increased entrepreneurship opportunities and encouraged youth to move beyond traditional jobs towards becoming business owners.

• PM Vishwakarma Yojana:
– Launched in 2023, this scheme aims to integrate traditional artisans and craftsmen (like blacksmiths, carpenters, tailors, goldsmiths, etc.) into the formal economy.
– It includes skill training, tool kits, digital transactions, marketing support, and easy loan facilities, which have led to increased local productivity and income.
            These schemes have not only reduced economic inequality but also b rought significant improvements in financial inclusion, social security, healthcare, and self-employment. Their combined impact is moving India toward a more inclusive and equitable society.

These initiatives are credited with reducing gaps in income and opportunity across regions and communities.

Conclusion

The report reflects a clear trend of falling poverty and rising income equality. Sustaining this progress will require strong data, continuous social protection, and inclusive policies to ensure that growth benefits all sections of society.