Context

• India ranked 4th, in recently as per World Bank in global equality status.

About

• As per World Bank, India lifted 171 million people out of extreme poverty.
• According to a World Bank report, inequality in India has come down significantly between 2011-12 and 2022-23, making it the fourth-most equal country globally.
• As per World Bank, India Gini Index stands at 25.5,  this place India as one of most equal countries in relative terms.

Understanding the Gini Index and India Score

• The Gini Index is a statistical measure used to gauge inequality in income, wealth, or consumption. A score of 0 represents perfect equality, while 100 denotes maximum inequality.
• India’s Gini Index (2022-23) is 25.5. In comparison, China: 35.7, United States: 41.8, G7/G20 Averages which is significantly higher than India
• India’s placement within the “moderately low inequality” category (Gini score of 25-30) positions it far ahead of many advanced economies and closer to the “low inequality” threshold.

Decline is Extreme Poverty as a Key Achievement

• India showed a great improvement in getting people out of extreme poverty as based on the global poverty line of USD 2.15/day, India’s extreme poverty rate dropped from 16.2% in 2011 to just 2.3% in 2022-23.
• This progress has resulted in 171 million Indians exiting the poverty trap in a decade, making it one of the most significant anti-poverty achievements globally in recent years.

Other trends

• Globally, just 30 countries fall into the moderately low inequality category including several european countries with strong welfare measures.
• These include Iceland, Norway, Finland and Belgium. It also includes growing economies like Poland and wealthy nations like UAE.

Government Schemes for Inclusive Growth and Driver for Less Inequality

The World Bank attributes this achievement not only to economic growth but to India’s focused, inclusive welfare policies. Key initiatives include:

Financial Inclusion and Direct Transfers

• PM Jan Dhan Yojana: Over 55 crore bank accounts have expanded financial access, especially for rural and underbanked citizens.
• Aadhaar-linked Direct Benefit Transfers (DBT): Enabled efficient and leak-proof delivery of government benefits, saving over ₹3.48 lakh crore by March 2023.
• Health and Social Security Ayushman Bharat: Offers ₹5 lakh in health insurance, with over 41 crore cards issued to date.
• PMGKAY: Provided free food grains to over 80 crore beneficiaries, contributing to food security and nutrition.
• Livelihood and Entrepreneurship
• Stand-Up India: Supports SC/ST and women entrepreneurs with loans and financial assistance.
• PM Vishwakarma Yojana: Aims to uplift traditional artisans with training, credit, and market support.

Balancing Growth with Equity

• India’s journey reflects a rare convergence of economic reform with social protection. 
• According to the Social Welfare Department’s statement, “India’s path to income equality has been steady and focused
• The Gini Index of 25.5 reflects real change in people’s lives, better access to food, jobs, healthcare, and banking.”
• The country’s progress in this domain is being seen as a model for developing economies that aim to pursue growth with fairness.

Conclusion

This report shows India’s remarkable journey towards more equal and inclusive society showcasing State’s commitments towards upholding constitutional values of welfarism.