India’s Incredible Rise: World Bank Says It’s Beaten US and China on Equality

India has emerged as one of the world’s most income-equal societies, surpassing advanced economies like the United States and China, according to the World Bank’s latest Spring 2025 Poverty and Equity Brief.

The new data puts India’s Gini Index—a key measure of income inequality—at 25.5, making it the fourth most equal country globally. Only the Slovak Republic, Slovenia, and Belarus rank higher. By comparison, the United States records a Gini Index of 41.8, while China’s stands at 35.7. A lower Gini score indicates a more even income distribution.

This milestone marks a dramatic shift in India’s economic narrative, historically associated with high inequality. “This reflects how India’s economic progress is being shared more evenly across its population,” the Ministry of Social Welfare said in a statement.

The report highlights a significant reduction in extreme poverty, with 171 million Indians lifted above the international poverty line of $2.15 per day between 2011 and 2023. Over that period, India’s poverty rate fell from 16.2% to just 2.3%.
The World Bank attributes this progress to a combination of sustained social welfare policies, digital infrastructure, and financial inclusion initiatives. Key government programs cited include the PM Jan Dhan Yojana, which has opened over 55 crore bank accounts; Aadhaar digital ID, covering more than 142 crore residents; and Direct Benefit Transfers, which have reportedly saved the exchequer Rs 3.48 lakh crore by March 2023 through leakage reduction."

Other critical interventions include healthcare access through Ayushman Bharat (over 41 crore health cards issued), free food grains under the PM Garib Kalyan Anna Yojana (benefiting 80 crore people), and support for entrepreneurs via Stand-Up India and the PM Vishwakarma Yojana.

While income inequality has widened in many developed economies in recent years, India’s approach combining technology-led governance with grassroots welfare outreach is being viewed as a potential model for reducing inequality at scale.

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