India has quietly moved into the top group of countries with the highest income equality in the world, based on the latest data shared by the World Bank.

With a Gini Index of 25.5, India is now ranked fourth among the most equal societies globally, with only the Slovak Republic, Slovenia and Belarus ahead of it.

A lower Gini score shows a more equal sharing of income, and India’s current rank places it above wealthier nations such as the United States, which stands at 41.8, China at 35.7 and all G7 and G20 member states. This represents a major shift in India’s economic path, as the country moves from being long seen as deeply unequal to becoming a global leader in inclusive growth.

India has made strong progress in reducing extreme poverty, as shown in the World Bank’s Spring 2025 Poverty and Equity Brief.

Between 2011 and 2023, a total of 171 million people in India moved out of extreme poverty. During the same period, the country’s poverty rate fell sharply from 16.2 per cent to just 2.3 per cent, based on the international poverty line of  $ 2.15 a day. This success has also helped bring down the income gap across the country.

Back in 2011, India’s Gini Index was 28.8, which was already better than many other countries, and over the past decade, steady progress has placed India among the most equal nations in the world. A mix of well-aimed welfare schemes, strong digital tools and wider access to banking and finance appears to be behind this transformation.

In a statement, the Ministry of Social Welfare listed some of the key schemes at the heart of this shift-

PM Jan Dhan Yojana, which opened over 55 crore bank accounts

Aadhaar digital ID programme, covering more than 142 crore people

Direct Benefit Transfers, which saved 3.48 lakh crore rupees by March 2023

These efforts have made sure that government aid goes straight to the people who need it most, without delays or middlemen.

Other major factors include healthcare services through Ayushman Bharat, which has issued over 41 crore health cards, support for small business owners under Stand Up India and PM Vishwakarma Yojana, and free food grain distribution through PMGKAY, which has helped 80 crore people.

"This is how India's economic development is being increasingly shared among its population," said the Social Welfare Ministry.

"Behind the success is a steady policy concentration on fighting poverty, deepening access to finance, and dispensing welfare support directly."

While most developed countries still face challenges with income inequality, India’s approach of combining digital governance with on-ground outreach shows how technology-driven systems can help reduce inequality on a large scale.