According to the World Bank ,India is the fourth most equal society in the world in terms of wealth,with a score of 25.5 on the Gini index in 2022. The Slovak Republic had the lowest inequality in the world, with a score of 24.1, while South Africa was the most unequal country in the world, with a score of 63.0.
The low score of India on the Gini index has been attributed to the government's focus on poverty reduction and the targeted welfare scheme for the poor and the underprivileged,
The notable achievement of India was highlighted in the World Bank’s “The Spring 2025 Poverty and Equity Brief” report.
India is currently the world’s fourth-largest economy, based on nominal gross domestic product (GDP), with the United States being the largest, followed by China and Germany.
The Gini Index was developed by Italian Statistician Corrado Gini in 1912. The index determines a country’s level of income inequality by measuring the distribution of income and wealth across its population.
The coefficient of the Gini index ranges from 0 (0%) to 1 (100%), with 0 representing perfect equality in the society and 1 representing perfect inequality in the society..
An increasing Gini Index score indicates growing income inequality in the country.
A low score on the Gini Index indicates that there has been a redistribution of wealth in the country in favour of the poor. The government’s focused intervention in reducing poverty and targeted welfare programmes like the PM Jan Dhan Yojana, Pradhan Mantri Garib Kalyan Anna Yojana, Ayushman Bharat Yojana, etc., have helped in the redistribution of wealth and reduced inequality in the country. This was acknowledged by the World Bank in its “Spring 2025 Poverty and Equity Brief” report. According to the report:
About World Bank's Gini Index
The World Bank’s Gini Index has classified the countries into five categories - Low Equality, Moderately Low Inequality, Moderately High Inequality, Highly Unequal and Very High Inequality.
Low Equality -(3 countries) Ginni Score upto 24.5
Moderately Low Inequality (30 countries), Gini Score 25.5 to 29.9.
Moderately High Inequality: (87 Countries), Gini Score -30.0 to 39.9
Highly Unequal-( 32 countries) , Gini Score 40.1 to 44.9
Very High Inequality(19 countries) , Gini Score 45.1 to 63