India Now Among World’s Most Equal Nations : Ahead of US and China
Nidhi | Jul 05, 2025, 22:06 IST
( Image credit : IANS, Timeslife )
India has quietly become one of the world’s most equal countries, says the World Bank’s Spring 2025 Poverty and Equity Brief. With a Gini Index of 25.5, India ranks fourth globally, ahead of the US and China. Targeted welfare schemes, massive digital inclusion, and direct benefit transfers have lifted over 171 million people out of poverty since 2011. This article explains how India transformed its poverty and income gap story, and what its new equality benchmark means for the world’s fight against rising inequality.
For decades, India has struggled with the twin challenges of poverty and inequality - a land of billionaires and slums, skyscrapers and shanties side by side. But the latest World Bank Spring 2025 Poverty and Equity Brief flips that old image on its head: India now ranks as the fourth most equal country in the world, ahead of economic giants like the United States and China.
With a Gini Index of 25.5, India trails only the Slovak Republic, Slovenia, and Belarus. The lower the Gini number, the more equal the income distribution. By comparison, the US stands at 41.8 and China at 35.7, making India’s progress all the more striking.
How did the world’s largest democracy, once seen as deeply divided, rise so high on the equality ladder? Let’s break down this quiet revolution.
Between 2011 and 2023, India’s poverty rate fell from 16.2% to just 2.3%, lifting 171 million people above the international poverty line of $2.15 per day. This progress is not just a number — it represents millions of families now able to afford better food, education, and healthcare, creating more level ground for future generations. A major driver has been India’s push for financial inclusion through digital tools. Schemes like PM Jan Dhan Yojana have opened over 55 crore bank accounts, while Aadhaar, the world’s largest biometric ID system, now covers 142 crore people.
This digital backbone enables Direct Benefit Transfers (DBT), which have reportedly saved the government Rs 3.48 lakh crore by plugging leakages and ensuring that subsidies reach the intended beneficiaries. In simple terms, middlemen have been cut out, and money goes straight to those who need it most. 
India’s ambitious social welfare net is one of the largest in the world:
Unlike some Western nations where wealth gaps are widening, India’s focus on combining technology with grassroots outreach is offering a fresh blueprint for tackling inequality. By connecting every household to digital IDs, bank accounts, and mobile networks, the government has been able to deliver targeted benefits more efficiently than ever before.
Experts point out that India’s Gini Index has dropped from 28.8 in 2011 to 25.5 today — a testament to how sustained policy, digital governance, and welfare can make a real difference. While challenges like job quality, gender gaps, and rural-urban disparities still exist, India’s trajectory suggests that rapid growth doesn’t have to leave the poor behind. In fact, as inequality deepens in countries like the US and China, India’s story serves as a reminder that inclusive growth is possible — with the right mix of technology, transparency, and targeted welfare.
Why India’s Equality Leap Matters
India’s jump to one of the world’s most equal nations shows what’s possible when digital tools and direct welfare work together, but the story isn’t finished.
Yes, income gaps have narrowed, but wealth inequality and regional differences still remain. The richest 1% still hold a large chunk of total wealth, and rural areas need more jobs that match urban growth.
Still, no other country has connected over a billion people to digital IDs, bank accounts, and real-time welfare at this scale. That’s India’s unique edge - and if it keeps bridging gaps in education, healthcare, and jobs, its quiet equality revolution might just turn into a lasting one.
In a world growing more unequal, India’s next challenge is clear: make equality not just a number — but a lived reality for every Indian.
(This article includes information and statistics provided in part by ANI)
With a Gini Index of 25.5, India trails only the Slovak Republic, Slovenia, and Belarus. The lower the Gini number, the more equal the income distribution. By comparison, the US stands at 41.8 and China at 35.7, making India’s progress all the more striking.
How did the world’s largest democracy, once seen as deeply divided, rise so high on the equality ladder? Let’s break down this quiet revolution.
1. 171 Million People Lifted Out of Extreme Poverty
India Looks At Poverty And Unemployment Before The General Election
( Image credit : IANS )
2. Direct Transfers and Digital Inclusion
This digital backbone enables Direct Benefit Transfers (DBT), which have reportedly saved the government Rs 3.48 lakh crore by plugging leakages and ensuring that subsidies reach the intended beneficiaries. In simple terms, middlemen have been cut out, and money goes straight to those who need it most.
3. Social Welfare at Scale
From struggles to success_ How PM Mudra Yojana transformed the lives of small shopkeepers.
( Image credit : IANS )
- Ayushman Bharat has issued over 41 crore health cards, giving millions access to free hospital care.
- PM Garib Kalyan Anna Yojana (PMGKAY) provided free food grains to around 80 crore people — a crucial support during the pandemic and beyond.
- Schemes like Stand-Up India and PM Vishwakarma Yojana help budding entrepreneurs, ensuring income generation at the grassroots level.
4. A New Model for Inclusive Growth
E-commerce to fuel India’s $1 trillion digital opportunity by 2030_ Report.
( Image credit : IANS )
Experts point out that India’s Gini Index has dropped from 28.8 in 2011 to 25.5 today — a testament to how sustained policy, digital governance, and welfare can make a real difference.
5. What This Means for the World
Why India’s Equality Leap Matters
Yes, income gaps have narrowed, but wealth inequality and regional differences still remain. The richest 1% still hold a large chunk of total wealth, and rural areas need more jobs that match urban growth.
Still, no other country has connected over a billion people to digital IDs, bank accounts, and real-time welfare at this scale. That’s India’s unique edge - and if it keeps bridging gaps in education, healthcare, and jobs, its quiet equality revolution might just turn into a lasting one.
In a world growing more unequal, India’s next challenge is clear: make equality not just a number — but a lived reality for every Indian.
(This article includes information and statistics provided in part by ANI)