India has achieved a remarkable milestone on the global economic stage, emerging as the fourth most income-equal society in the world, according to the latest World Bank data. With a Gini Index score of just 25.5, India now trails only the Slovak Republic, Slovenia, and Belarus in terms of income equality—surpassing many developed nations including the United States (41.8), China (35.7), and all member countries of the G7 and G20 groups.
This stunning development signals a new chapter in India’s growth story, one that highlights not just economic expansion but equitable distribution of wealth and opportunity. The Gini Index, which measures income inequality on a scale of 0 (perfect equality) to 100 (perfect inequality), is globally accepted as a benchmark of income fairness. India’s improved score from 28.8 in 2011 to 25.5 in 2025 represents more than just numbers—it reflects the impact of deep structural reforms and inclusive policy measures.
Policy-Driven Progress: Making Growth Inclusive
Behind India’s advancement is a deliberate and sustained effort to ensure that growth reaches every corner of society. The Ministry of Social Welfare, in a recent statement, noted, “This reflects how India’s economic progress is being shared more evenly across its population. The progress is the outcome of focused poverty-reduction policies, expanded financial access, and welfare delivery reaching the last mile.”
These efforts are not recent or reactive; they are the culmination of over a decade of targeted initiatives. From digital financial infrastructure to welfare delivery reforms, the Indian government has transformed its social architecture to better serve the underprivileged.
171 Million Lifted Out of Poverty Since 2011
According to the World Bank’s Spring 2025 Poverty and Equity Brief, India has lifted approximately 171 million people out of extreme poverty between 2011 and 2023. During the same period, the national poverty rate—based on the international benchmark of $2.15 per day—dropped sharply from 16.2% to just 2.3%.
This is not just a statistical achievement but a real-life improvement for millions of families who now have access to better food, education, healthcare, and employment opportunities.
Jan Dhan, Aadhaar, and DBT: The Trinity of Transformation
A cornerstone of this success has been the Jan Dhan-Aadhaar-Mobile (JAM) trinity, which has revolutionized financial access and governance:
- Over 55 crore Jan Dhan accounts have been opened, connecting marginalized citizens to formal banking for the first time.
- Aadhaar, India’s biometric identity platform, has reached over 142 crore individuals, making service delivery more efficient and fraud-free.
- Direct Benefit Transfers (DBTs), powered by Aadhaar and Jan Dhan, have become a model of global financial governance, saving ₹3.48 lakh crore as of March 2023 by eliminating leakages.
These digital innovations have brought dignity, security, and choice to millions who were once left outside the formal economic system.
Health, Food, and Livelihoods: Building a Safety Net
India’s focus on welfare and empowerment has covered every aspect of life:
- The Ayushman Bharat scheme has issued over 41 crore health cards, providing families with health insurance up to ₹5 lakh, easing the burden of medical expenses.
- The PM Garib Kalyan Anna Yojana (PMGKAY) has ensured food security for over 80 crore citizens, especially during the COVID-19 crisis.
- Initiatives like Stand-Up India and PM Vishwakarma Yojana have empowered entrepreneurs and artisans, supporting grassroots employment and cultural preservation.
Together, these schemes reflect a government architecture built to empower, not just assist.
Looking Ahead: Sustaining the Momentum
India’s current Gini Index score may have caught global attention, but sustaining this momentum requires continued investment in human capital, infrastructure, and inclusive growth.
Experts suggest that improving educational access, skilling youth, boosting rural connectivity, and encouraging micro-enterprise development will be key to maintaining this equitable trajectory.
A New Global Model?
India’s story holds lessons for the world. At a time when income gaps are widening across developed economies, India’s ability to grow while reducing inequality offers a model worth studying.
In conclusion, India’s rise as one of the world’s most income-equal societies is not just a statistical feat—it is a humanitarian and developmental success story. It reflects years of groundwork, technological innovation, and a firm political will to ensure that the benefits of economic growth do not stay limited to the privileged few.
