India Ranks Fourth Globally for Income Equality

Inequality in India has decreased significantly between 2011-12 and 2022-23, making it the fourth-most equal country globally, as per a World Bank report. This improvement is accompanied by a notable decline in extreme poverty, dropping from 16.2% in 2011-12 to 2.3% in 2022-23, according to World Bank data.

The reduction in inequality is credited to various government initiatives and schemes implemented over the past decade. India's Gini Index score, a measure of equality, stands at 25.5, positioning it as the fourth most equal country worldwide, following the Slovak Republic, Slovenia, and Belarus.

The Gini Index ranges from 0 to 100, with 0 indicating perfect equality and 100 representing absolute inequality. India's score is notably lower than China's 35.7 and the United States' 41.8. The country falls into the 'moderately low' inequality category, with scores between 25 and 30, and is close to entering the 'low inequality' group.

The government attributes this progress to a significant decrease in poverty levels. Over the past decade, 171 million Indians have been lifted out of extreme poverty. The share of people living below the global extreme poverty threshold has decreased from 16.2% to 2.3%.

India's journey towards greater income equality is reflected in its Gini Index, which has decreased from 28.8 in 2011 to 25.5 in 2022. This shift demonstrates India's consistent advancement in balancing economic growth with social equity.

The country's progress towards income equality is supported by targeted government schemes focusing on financial access, efficient welfare benefit delivery, and support for vulnerable groups. Initiatives like PM Jan Dhan Yojana, Direct Benefit Transfer, and Stand-Up India have played a crucial role in bridging gaps and ensuring inclusive growth.

India's ability to combine economic reform with robust social protection sets it apart. Schemes like Jan Dhan, DBT, and Ayushman Bharat have helped narrow disparities, while programmes such as Stand-Up India and PM Vishwakarma Yojana empower individuals to create wealth and secure livelihoods independently.

India's experience highlights the synergy between equality and development when supported by sound policies and inclusive strategies, emphasizing that these goals are interconnected and can progress together.

According to the source: The Hindu.