In News:

According to the World Bank’s Spring 2025 Poverty and Equity Brief, India has emerged as the fourth most equal society globally, with a Gini Index of 25.5—outperforming all G7 and G20 nations. Only the Slovak Republic (24.1), Slovenia (24.3), and Belarus (24.4) rank ahead.

This achievement marks a significant improvement from India’s Gini score of 28.8 in 2011 to 25.5 in 2022, reflecting a steady narrowing of income inequality and growing social equity.

Key Highlights:

Gini Index Comparison (2022-2023):

Poverty Reduction Achievements:

• 171 million people lifted out of extreme poverty (2011–2023).
• Population living under $2.15/day fell from 16.2% (2011–12) to 2.3% (2022–23).
• Under revised poverty line of $3.00/day, poverty fell to 5.3% in 2022–23.

Drivers of Income Equality:

a) Financial Inclusion:

• Jan Dhan Yojana: Over 55.69 crore bank accounts opened (as of June 2025).
• Enabled Direct Benefit Transfers (DBT), reducing leakages and ensuring targeted welfare.

b) Digital Infrastructure:

• Aadhaar: Over 142 crore issued (as of July 2025), enabling real-time, identity-based service delivery.
• DBT savings: Over ?3.48 lakh crore by March 2023.

c) Universal Healthcare Access:

• Ayushman Bharat: Over 41.34 crore health cards issued.
• Covers ?5 lakh per family/year; now extended to all citizens aged 70+ under Ayushman Vay Vandana.
• Over 32,000 empanelled hospitals ensure access to treatment.

d) Empowerment of Marginalized Communities:

• Stand-Up India: Loans worth ?62,807 crore disbursed to SC/ST and women entrepreneurs.
• PM Vishwakarma Yojana: Nearly 30 lakh artisans registered for credit and marketing support.

Significance for India and the World:

India’s low Gini score demonstrates that economic growth and social equity can be pursued together. The country’s targeted welfare architecture, digital governance tools, and inclusive schemes have created a replicable model for other developing nations.

As global inequality widens, India’s success offers a template for countries seeking to integrate economic reforms with social protection mechanisms to foster inclusive development.