Context: India has been ranked the 4th most equal country globally as per the World Bank’s Spring 2025 Poverty and Equity Brief.
About India Falls into the ‘Moderately Low’ Inequality Category:
- Report Source: Published by the World Bank, covering data for 167 countries.
- Gini Index: India’s Gini score is 25.5, placing it in the “moderately low inequality” band (Gini 25–30).
- Comparison: India ranks 4th globally, behind Slovak Republic, Slovenia, and Belarus, and ahead of China (35.7) and the USA (41.8).
- Trend: India’s Gini Index improved from 28.8 (2011) to 25.5 (2023), showing more equitable income distribution.
- Poverty Reduction: 171 million people lifted out of extreme poverty (16.2% in 2011 to 2.3% in 2023) based on the $2.15/day threshold.
- Policy Drivers:
- PM Jan Dhan Yojana: Over 55 crore bank accounts opened.
- Aadhaar-Linked DBTs: ₹3.48 lakh crore saved in leakages.
- Ayushman Bharat: 41 crore+ cards issued for ₹5 lakh health cover.
- PMGKAY: Ensured food security to 80 crore citizens.
- Stand-Up India & PM Vishwakarma Yojana: Boosted SC/ST, women, and artisan livelihoods.
Relevance in UPSC Exam Syllabus:
- GS Paper II: Welfare Schemes for Vulnerable Sections, Governance and Inclusive Development.
- GS Paper III: Indian Economy – Poverty and Inequality, Human Development Indicators.
- Essay Paper: Topics on Social Justice, Equity vs. Growth, Welfare State.
