Knowledge Nugget: World Bank ranked India among ‘most equal countries': How is it relevant for UPSC Exam
(Relevance: UPSC frequently asks questions on reports and indices. The key takeaways from these reports are also essential fodder for your Mains examination for intricate points. In 2012, a question was asked on the Multidimensional Poverty Index; in 2019, the question was on the Global Competitiveness Report. Therefore, it becomes important to know about the indices and reports that are in the news.)
India has emerged not only as the world's fourth-largest economy, but also as one of the 'most equal countries' globally, according to a new World Bank report that places the country just behind the Slovak Republic, Slovenia, and Belarus. In this context, let's know about the Gini Index and key highlights of World bank's report.
1. The Gini Index has placed India in the fourth position with a score of 25.5, much lower than countries like China (35.7), the USA (41.8), and the United Kingdom (34.4). It is also more equal than every G7 and G20 country, many of which are considered advanced economies.
2. Out of the 167 countries for which the World Bank has released data, the Slovak Republic with a score of 24.1 is ranked in first position among the most equal countries.
3. According to the report, India falls into the 'moderately low' inequality category and is just a fraction away from joining the 'low inequality' group, which includes countries like the Slovak Republic (24.1), Slovenia (24.3), and Belarus (24.4).
4. Notably, a recent World Bank report — 'The Spring 2025 Poverty and Equity Brief' — also highlighted that India has successfully lifted 171 million people out of extreme poverty.
5. The Gini Index measures the extent to which the distribution of income or consumption among individuals or households within an economy deviates from a perfectly equal distribution. In simpler terms, it provides a clear picture of how evenly income is distributed within a country.
6. The index ranges from 0 to 100 — a Gini Index of 0 represents perfect equality, while an index of 100 implies perfect inequality. The higher the Gini Index the more unequal the country.
7. The data for the Index is based on primary household survey data obtained from government statistical agencies and World Bank country departments. Data for high-income economies are mostly from the Luxembourg Income Study database.
The Gini index, or Gini coefficient, was developed in 1912 by Italian statistician Corrado Gini. The index is based on the difference between the Lorenz curve (the observed cumulative income distribution) and the notion of a perfectly equal income distribution.
After understanding the Gini Index and the World Bank's latest report, let's also know the recently revised global poverty line by the World Bank — a topic that has sparked much discussion lately.
8. The World Bank recently revised its threshold poverty line to $3 a day (daily consumption of less than $3) from the earlier $2.15 a day. With the revised poverty line, the extreme poverty rate for India declines sharply to 5.3 per cent in 2022-23 from 27.1 per cent in 2011-12. In absolute terms, people living in extreme poverty fell from 344.47 million to just 75.24 million, latest data from the World Bank shows.
9. Poverty line is the level of income used as a cut-off point for deciding who is poor in any economy. It represents the minimum income level necessary to meet basic needs, and varies across countries depending on their overall economic conditions. It is important to note here that the context (both time period and location) is critical to arriving at a meaningful poverty line.
10. Despite the World Bank revising its extreme poverty line to adjust for global inflation in 2021 prices, India seems to have fared well, with the poverty numbers holding good. At $3 a day threshold, India's extreme poverty rate for 2022-23 rises from 2.3 per cent (at a poverty line of $2.15 a day) to 5.3 per cent, the World Bank estimates.
1. Recently, the United Nations Development Programme (UNDP) released its latest Human Development Report (HDR) titled 'A matter of choice: People and possibilities in the age of AI.' The report shows how Artificial Intelligence (AI) could reignite development.
2. The report noted the widening gap in inequality between countries with low Human Development Index (HDI) scores and those with very high HDI scores for the fourth consecutive year, highlighting a stark reversal of a historical trend where such inequalities were decreasing.
3. HDI is composite index that measures average achievement in human development taking into account four indicators: life expectancy at birth (Sustainable Development Goal 3); expected years of schooling (SDG 4.3); mean years of schooling (SDG 4.4); and gross national income (GNI) per capita (2017 PPP$) (SDG 8.5).
4. In HDI 2025, Iceland is ranked first with an HDI of 0.972, while South Sudan is ranked last with an HDI of 0.388.
5. India shows steady upward movement in the HDI rankings, ranking 130 in the 2025 UNDP report. The country's HDI value rose from 0.676 in 2022 to 0.685 in 2023, placing India in the medium human development category and bringing it closer to the high human development threshold (HDI ≥ 0.700).
Source: UNDP's HDR 2025
6. The report noted that India's HDI value has increased by over 53% since 1990, showing a growth faster than both the global and South Asian averages. The targeted social protection and welfare programmes, and economic growth are cited as reasons for the progress.
7. According to the report, India has been placed in a unique position globally as a rising AI powerhouse with the highest self-reported AI skills penetration. The report pointed out that 20 per cent of Indian AI researchers are now choosing to stay in the country – up from almost none in 2019.
(1) Consider the following statements:
1. A Gini Index of 0 represents perfect equality, while an index of 100 implies perfect inequality.
2. The higher the Gini Index the more unequal the country.
3. The index is based on the difference between the Lorenz curve and the notion of a perfectly equal income distribution.
How many of the statements given above is/are correct?
(a) Only one
(b) Only two
(c) All three
(d) None
(2) Consider the following statements with reference to the Human Development Report:
1. The Human Development Report is published by World Bank.
2. India is in the medium human development category with an HDI value of 0.685.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
(Sources: Top 10 most equal countries in the world and India's rank in it, UNDP's HDR 2025)
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Roshni Yadav is a Deputy Copy Editor with The Indian Express. She is an alumna of the University of Delhi and Jawaharlal Nehru University, where she pursued her graduation and post-graduation in Political Science. She has over five years of work experience in ed-tech and media. At The Indian Express, she writes for the UPSC section. Her interests lie in national and international affairs, governance, economy, and social issues. You can contact her via email: roshni.yadav@indianexpress.com ... Read More
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Maoism is based on Mao Zedong's doctrine of agrarian revolution and guerrilla warfare. Its Indian variant emerged with the 1967 Naxalbari uprising, leading to the broader Naxalite movement. • Over decades, this transformed itself into factions, with the CPI (Maoist) becoming the dominant group in 2004 through the merger of the People's War Group (PWG) and the Maoist Communist Centre (MCC). LWE is the term used by the Indian state to categorise such insurgencies within a national security framework. • By contrast, 'Urban Naxal' is often used to refer to supporters of Naxalism, including intellectual and financial support. • The Maoist insurgency traces its roots to the CPI(Marxist-Leninist) founded by Charu Mazumdar and Kanu Sanyal. The movement fractured during the 1970s–90s into numerous groups, many of which operated in Andhra Pradesh, Bihar, Odisha, and Chhattisgarh. 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(UPSC CSE 2015) Syllabus: Preliminary Examination: Current events of national and international importance Mains Examination: General Studies-I: Salient features of the world's physical geography. General Studies-II: India and its neighbourhood- relations. What's the ongoing story: After a five-year hiatus triggered by the Covid-19 pandemic and extended due to tensions between India and China, the Kailash-Mansarovar yatra has resumed in 2025. Key Points to Ponder: • Where is Nathu La pass located? • Map work: Mount Kailash, Dirapuk, Dolma La, and Zutul Puk • What is the cultural significance of the Kailash Mansarovar yatra? • What is the significance of initiatives like the Kailash Mansarovar Yatra in improving bilateral ties between India and China? • How does cultural diplomacy complement traditional diplomatic mechanisms? Key Takeaways: • This year, the Ministry of External Affairs chose 750 pilgrims who would be making the storied pilgrimage. • With an elevation of 6,638 metres, Mount Kailash (Gang Rinpoche in Tibetan) is located in the Ngari Prefecture of the Tibet Autonomous Region, near the tri-junction of India, Tibet and Nepal. • To its south on the Tibetan plateau are two lakes: the freshwater Manasarovar (Mapam Yumtso) and saltwater Rakshastal (Lhanag Tso). • Both lakes and the towering mountain in their background are significant in Hindu, Buddhist, Jain, and Tibetan Bon traditions. • Four major rivers — the Yarlung Tsangpo (which later becomes the Brahmaputra), the Indus, the Sutlej, and the Karnali (later known as Ghaghra, a major tributary of the Ganga) — trace their to origins 'the watershed of this iconic mass of rock,' Alice Albinia wrote in her award-winning book Empires of the Indus: The Story of a River (2008). • Despite its age-old sacredness, however, the Kailash-Mansarovar complex was not a popular pilgrimage site till 'as recently as the early 1900s…,' wrote Tibetologist Alex McKay in his book Kailas Histories: Renunciate Traditions and the Construction of Himalayan Sacred Geography (2015). • Pilgrims typically travel to and circumambulate Mansarovar, a 90-km walk that takes between three to five days to complete. Some then circumambulate Mount Kailash, a much more arduous 52-km trek that takes around three days to complete. • The Kailash trek began on the southern side of the mountain, at Tarchen. Pilgrims typically travel clockwise around the mountain, always keeping Kailash to their right. The trek passes through Dirapuk, Dolma La, Zutul Puk, and finally culminates in Tarchen. • On the Nathu La pass route, which first opened in 2015, the journey is even easier: pilgrims travel the entire 1,500 km from Nathu La to Mansarovar by car or bus. Do You Know: • There are two primary routes to reach Lake Mansarovar from India. • LIPULEKH PASS ROUTE: Lipulekh pass lies at an altitude of 5,115 metres, on the border between Uttarakhand and TAR, near the trijunction with Nepal. It is an ancient passageway between the Indian subcontinent and the Tibetan Plateau, frequented by traders and pilgrims alike. • While the Lipulekh pass route is the most direct way to get to Mansarovar from India — as the crow flies, the lake is roughly 50 km from the border — the terrain makes the journey very challenging. Currently, this route entails roughly 200 km of hard trekking. Before 2020, it had been operational since 1981. • NATHU LA PASS ROUTE: Nathu La pass lies at an altitude of 4,310 metres on the border between Sikkim and TAR. It is one of two mountain passes in the region — the other being Jelep La — that have connected Sikkim and Tibet since ancient times. • The route to Mansarovar from Nathu La is much longer in terms of distance — close to 1,500 km. But it is fully motorable, meaning pilgrims can make it all the way to the lake without any trekking. (They would only need to trekk 35-40 km for the circumambulation of Mount Kailash). This route became operational in 2015. • NEPAL ROUTE: No private operators function on the two official routes. There is, however, a third route through Nepal in which private companies do operate. In theory, this route has been accessible to Indians since 2023, when China reopened its border with Nepal. But visa and permit requirements, as well as high costs due to China-imposed fees, have meant that few have likely availed this option. Other Important Articles Covering the same topic: 📍Kailash Mansarovar Yatra to resume soon: Everything you need to know 📍India, China move to normalise ties, Kailash Mansarovar Yatra to resume in June after 5 years Prelims Question Covering similar theme: (4) Consider the following pairs : Which of the above pairs are correctly matched? (a) l and 3 only (b) 2 and 4 only (c) 1, 3 and 4 only (d) 1, 2, 3 and 4 One, it uses a quick, easy-to-use tool, which helps a doctor determine whether a patient is severely ill and needs to be hospitalised soon after being diagnosed with TB. The tool does not require any laboratory-based investigations. Two, the initiative follows a differentiated care model which offers a patient-centred approach instead of a one-size-fits-all treatment. Subscribe to our UPSC newsletter. Stay updated with the latest UPSC articles by joining our Telegram channel – IndianExpress UPSC Hub, and follow us on Instagram and X. 🚨 Click Here to read the UPSC Essentials magazine for June 2025. Share your views and suggestions in the comment box or at Khushboo Kumari is a Deputy Copy Editor with The Indian Express. She has done her graduation and post-graduation in History from the University of Delhi. At The Indian Express, she writes for the UPSC section. She holds experience in UPSC-related content development. You can contact her via email: ... Read More
Mint
9 hours ago
- Mint
Diverting food security rice stocks to ethanol production flies in the face of economics
It is inconceivable that a country grappling with hunger and malnourishment, home to the world's largest population of undernourished children and a nation where 129 million people, according to a 2024 World Bank report, live in extreme poverty (defined as surviving on less than ₹180 per day) would divert rice, a key staple, to ethanol production. And yet, that is exactly what the Indian government is doing–at highly subsidised prices. It is selling a whopping 5.2 million tonnes of rice from its food security buffer stock this year to ethanol manufacturers at ₹22.50 per kg. The first tranche of 2.4 million tonnes has already gone to manufacturers, and it has now decided to release a further 2.8 million tonnes. The government has advanced three justifications for the move. First, it argues that rice stocks held by the Food Corporation of India are well above the buffer stock requirement – currently, over 38 million tonnes against the norm of 13.5 million tonnes as of May 2025. Two, it claims that using rice for ethanol helps bleed excess stock, thereby opening up storage room and also preventing loss due to spoilage. The third and clinching argument is that blending ethanol with petrol cuts dependence on costly, imported fossil fuel. Petroleum and natural gas minister Hardeep Singh Puri said last month that India has already hit the target of blending 20% ethanol with petrol, nearly six years ahead of the 2030 target, and is now examining blending 5% ethanol with diesel. He also said this has led to a saving of ₹1.5 trillion in import bills. Surplus stock argument These arguments sound plausible, even logical at first glance, but do not stand up to a deeper look. Take the 'surplus stock' argument. True, stocks are above the mandated level, but that is more due to procurement and distribution inefficiencies. India's creaky public distribution system, which supplies subsidised rice and wheat to the poor, is riddled with gaps and distortions. Besides, buffer stocks are just that–a buffer against unforeseen exigencies. Even Japan recently was forced to release 300,000 tonnes of rice due to public anger against shortages. With the vagaries of climate change, increasingly larger sections of the population are vulnerable to climate-related disasters. It is not as if there are not enough takers. It is just that those who need it are unable to access it due to a lack of resources, a lack of documentation or simply a lack of coverage of the subsidised grain distribution system. India ranked 105 out of 127 countries in the World Hunger Index for 2024. Should a country with such a severe hunger and malnourishment problem be diverting rice to alcohol production? The government has also said that only 'damaged or broken" rice will be given for ethanol conversion. First of all, broken rice is not inedible, nor does it lack a market. In fact, in March this year, the government allowed 100 per cent export of broken rice stocks. India exported close to 4 million tonnes of broken rice to Africa and South East Asia last year. Also Read: Ethanol blending: The good, the bad and the googlies If the government is unable to reach the grain to the poor and the hungry, it can at least export rice. Exports will fetch foreign exchange and raise farmer incomes. Even assuming that only grain unfit for human consumption is used, which there's no way of checking, it's not as if there is no market for that either. Damaged grain is an important – and cheap – input into poultry and animal feed. India has the world's largest cattle population of over 300 million cows and buffaloes. In addition, it is the world's third-largest egg producer and the fifth-largest chicken meat producer, with a population of over 850 million birds. Also Read: Cooperative sugar mills to be incentivized to boost ethanol production There are also alternative sources for ethanol, that do not rely on food grain. A 2021 techno-economic study by the International Council on Clean Transportation found that with some viability gap funding, the cost of second-generation ethanol–produced from rice and wheat straw and sugarcane bagasse–matches India's fixed ethanol price of ₹65.61 per litre. India produces a whopping 126 million tonnes of rice straw and over 113 million tonnes of wheat straw annually. Over the longer term, using India's massive coastline to produce algae for ethanol production provides a biomass source which does not conflict with food requirements. India needs to get serious about its hunger and nutrition challenge rather than disputing the methodologies of global studies such as the hunger index. It also needs to effectively pursue alternatives to ethanol generation for more efficient use of taxpayer money. Diverting already subsidised grain to ethanol manufacturers at further subsidised prices flies in the face of both economic rationale and social justice. Also Read: Changes in western disturbances may adversely affect food security, crop productivity
