Latest news with #GiniIndex
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Business Standard
11 hours ago
- Business
- Business Standard
High equality ranking for India masks deeper gaps, say economists
According to the World Bank, India's Gini Index stands at 25.5, making it the fourth most equal country in the world, after the Slovak Republic, Slovenia and Belarus premium Ruchika Chitravanshi Shiva Rajora New Delhi Listen to This Article A recent World Bank report placing India among the most equal countries globally may present a limited view of inequality, with economists suggesting that broader data sets could tell a different story. According to the report, India's Gini index (or coefficient/ratio), a key measure of inequality, stood at 25.5 in 2022–23, placing the country fourth globally in terms of equality, behind only the Slovak Republic, Slovenia, and Belarus. The Gini index ranges from 0 to 100, where zero represents perfect equality and 100 indicates extreme inequality, with one individual possessing all income or wealth, or accounting for all consumption.
Khaleej Times
17 hours ago
- Business
- Khaleej Times
India rises ranks among world's most equal societies amid rapid economic growth
India has emerged as one of the most economically equal societies in the world, ranking fourth globally in income equality, according to the World Bank's latest data. The country's Gini Index now stands at 25.5 — a significant improvement from 28.8 in 2011 — placing it ahead of all G7 and G20 nations, including the United States (41.8), China (35.7), Germany (31.4), and the United Kingdom (34.4). The Gini Index is a widely used metric to gauge income inequality on a scale from 0 (perfect equality) to 100 (extreme inequality). Only the Slovak Republic, Slovenia, and Belarus now rank ahead of India, reinforcing the country's emergence as a rare example of high economic growth paired with improving income equity. This recognition comes at a time when India has also been officially confirmed as the world's fourth-largest economy in nominal terms, overtaking Japan and trailing only the United States, China, and Germany. According to the International Monetary Fund (IMF), India's GDP is projected to grow by 6.8 per cent in 2025 — among the fastest in the G20 — supported by robust domestic demand, government-led infrastructure investment, and a dynamic services sector. The World Bank's Spring 2025 Poverty and Equity Brief notes that India has lifted 171 million people out of extreme poverty between 2011 and 2023. Based on the $2.15 per day global poverty threshold, the poverty rate has declined sharply from 16.2 per cent in 2011 to just 2.3 per cent in 2023, underscoring the depth and scale of India's inclusive development. Experts attribute this transformation to a range of structural reforms and targeted welfare schemes that have expanded financial access, improved social safety nets, and enhanced public service delivery. 'India's success in narrowing inequality and reducing poverty reflects a deliberate and sustained policy focus. The country has effectively deployed digital infrastructure and direct transfers to ensure benefits reach those most in need,' the World Bank said in its commentary. The expansion of financial inclusion through the Pradhan Mantri Jan Dhan Yojana has been a cornerstone of this achievement. Since its launch in 2014, the scheme has opened over 550 million bank accounts, bringing millions of unbanked individuals into the formal financial system. Linked with Aadhaar — the world's largest digital ID platform covering over 1.42 billion people — and mobile connectivity, the system has enabled seamless delivery of welfare payments via Direct Benefit Transfers (DBTs). As of March 2023, DBTs had saved the government over Rs3.48 trillion by eliminating leakages and duplication. Social protection has also been significantly enhanced through Ayushman Bharat, India's universal health insurance scheme offering Rs500,000 in coverage per family annually. With over 410 million health cards issued, it represents one of the world's largest publicly funded health programs. Other key drivers of India's equity-focused development include PM Garib Kalyan Anna Yojana (PMGKAY) — a food security scheme benefiting over 80 crore citizens, especially during the Covid-19 pandemic — and initiatives such as Stand-Up India and PM Vishwakarma Yojana, which support marginalized entrepreneurs, artisans, and craft workers through credit, training, and formal recognition. Economists believe that India's combination of high growth and social equity offers an important model for other developing economies. 'India's case shows that it's possible to achieve rapid economic expansion while reducing inequality — provided there's strong policy coordination, technological innovation, and inclusive governance,' said Dr. Raghuram Rajan, former RBI Governor, in a recent interview. The IMF has echoed this optimism in its latest World Economic Outlook, praising India's stable macroeconomic environment and structural resilience. The report forecasts that India will contribute more than 16 per cent of global growth in 2025, second only to China, and that its share of global GDP (in purchasing power parity terms) will continue to rise steadily. While challenges remain — including regional disparities, unemployment, and the need for greater investment in education and healthcare — India's progress is increasingly being recognised as both statistically impressive and socially significant. As the world's most populous nation and a rising global economic power, India's ability to combine growth with equity could play a defining role in shaping the global development narrative over the coming decade.
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Business Standard
19 hours ago
- Business
- Business Standard
'Out-of-touch claim': Congress slams NDA govt on income equality data
The Congress on Sunday dismissed the central government's claim that India is among the world's most equal societies, calling it a "staggeringly out-of-touch" interpretation of World Bank data. The rebuttal came a day after a government release cited India's Gini Index score of 25.5—ranking it fourth globally in income equality. In a statement dated July 6, Congress General Secretary Jairam Ramesh accused the Bharatiya Janata Party-led government of data manipulation and misleading narratives. 'No country that has a poverty rate of 28.1 per cent can make a justifiable claim to being one of the most equal societies in the world,' the statement read. Referring to the World Bank's Poverty and Equity Brief released in April, the Congress listed several concerns. It highlighted that income inequality in India is likely underreported due to sampling and data limitations in government surveys. 'Wage disparity in India is high, with the top 10 per cent earning 13 times more than the bottom 10 per cent in 2023–24,' the party noted. It added that the adoption of a newer purchasing power parity (PPP) benchmark in 2021 likely inflates the sense of progress on poverty reduction. The party also flagged methodological changes in the Household Consumption Expenditure Survey 2022–23, warning that comparisons with earlier data may not be reliable. It recalled that the previous 2017–18 survey was scrapped by the Centre after it showed declining rural consumption. Poverty rate far higher under new benchmark: Congress Using the benchmark of $3.65/day for lower-middle-income countries, the Congress cited the 2022 poverty rate as significantly higher at 28.1 per cent—contradicting the Centre's assertion that only 5.3 per cent of Indians remain poor under the revised $3/day standard. According to the Congress, this discrepancy underscores the lack of updated poverty lines and consistent data. 'The government has not updated the poverty line since the Rangarajan Committee Report of 2014,' the Congress said, demanding immediate action. Inequality is structural: Congress Congress said inequality is now 'firmly embedded' in India's economic growth trajectory under the Narendra Modi-led government. It urged reforms to the Goods and Services Tax (GST) to reduce its regressive impact, end 'tax terrorism', and address rising corporate concentration. 'There is a compelling need to support households directly and promote savings and consumption among the most vulnerable,' it said, criticising what it described as 'brazen corporate favouritism'. Govt cites flagship schemes to defend record Earlier, the Ministry of Information and Broadcasting had claimed that India's Gini Index score reflects sustained economic growth and effective poverty-alleviation measures. According to a PIB release, India's poverty rate fell from 16.2 per cent in 2011–12 to 2.3 per cent in 2022–23 under the $2.15/day threshold. It credited schemes such as PM Jan Dhan Yojana, Aadhaar, Difect Bank Transfer, Ayushman Bharat, Stand-Up India, PM Garib Kalyan Anna Yojana, and PM Vishwakarma Yojana for expanding welfare, financial access, and entrepreneurship.
Indian Express
21 hours ago
- Business
- Indian Express
Top 10 most equal countries in the world and India's rank in it
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. The term 'most equal country' describes a nation where income and consumption are distributed more evenly among its population. The Gini Index, a report by the World Bank, 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. Out of the 167 countries for which the World Bank has released data, 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). This marks a remarkable achievement for a country of its size and diversity. It reflects India's strong economic progress, which aims at reducing inequality and poverty. 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. The share of people living on less than 2.15 US dollars a day, which was the global threshold for extreme poverty until June 2025, fell sharply from 16.2 percent in 2011–12 to just 2.3 percent in 2022–23. 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. 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. 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.
India.com
a day ago
- Business
- India.com
India beats US, China, UK, 17 crore Indians gets directly benfitted due to..., list is about...
India has surpassed both the United States and China in terms of economic equality. 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 an official release citing World Bank data, this is in addition to a sharp decrease in extreme poverty, which has dropped from 16.2 per cent in 2011-12 to 2.3 per cent in 2022-23. The government explained that the decline in inequality results from multi-pronged initiatives and strategies developed within the last decade. The only three countries that have a better (lower) Gini Index score (a numerical measure of equality) are Slovakia, Slovenia and Belarus. India is much better placed than countries like China, the USA and the United Kingdom. As per news agency PTI, the statement reads,'…India's Gini Index stands at 25.5, making it the fourth most equal country in the world, after the Slovak Republic, Slovenia and Belarus.' The Gini Index is useful in evaluating the extent of equality in the distribution of income, wealth, and consumption across households or individuals in a country. The index has a range of values from 0 to 100. A score of 0 means the country has perfect equality (whereby all households have the same income/wealth/consumption) and, a score of 100 means, one person has all income, wealth, or consumption, (those lower or worse off would have zero), therefore, absolute inequality. The larger the Gini Index, the greater the inequality in the country. What is Gini Index? India's score is much lower than China's 35.7 and far lower than the United States, which stands at 41.8. As per the World Bank's report, which has released the data for 167 countries, India falls into the 'moderately low' inequality category, which includes Gini scores between 25 and 30. India is only a fraction away from joining the 'low inequality' group. The government attributed this achievement to a sharp reduction in the poverty level in the last decade. According to the World Bank report, 171 million Indians have been lifted out of extreme poverty over the past decade. The share of people living on less than USD 2.15 a day, which was the global threshold for extreme poverty till June 2025, fell sharply from 16.2 per cent in 2011-12 to just 2.3 per cent in 2022-23. Globally, just 30 countries fall into the 'moderately low' inequality category, including several European countries with strong welfare systems. These include Iceland, Norway, Finland, and Belgium. It also features growing economies like Poland and wealthy nations like the United Arab Emirates. The release said India's journey towards a more equal society is reflected in its Gini Index over the years. The index was measured at 28.8 in 2011 and reached 25.5 in 2022. 'This steady shift shows that India has made consistent progress in combining economic growth with social equity,' it said. It further said India's progress towards greater income equality is backed by a series of focused government initiatives. These schemes aim to improve financial access, deliver welfare benefits efficiently, and support vulnerable and underrepresented groups. 'Together, they have helped bridge gaps, boost livelihoods, and ensure that growth reaches all sections of society,' the release said. It has cited schemes, like PM Jan Dhan Yojana, Direct Benefit Transfer, and Stand-Up India, among others, which have helped India in its progress towards greater income equality. 'India's path to income equality has been steady and focused. The Gini Index of 25.5 is not just a number. It reflects real change in people's lives. More families now have access to food, banking, healthcare, and jobs,' the release said. What sets India apart is its ability to balance economic reform with strong social protection, it said. Targeted schemes like Jan Dhan, DBT, and Ayushman Bharat have helped close long-standing gaps,' it said. At the same time, programmes such as Stand-Up India and PM Vishwakarma Yojana are helping people create wealth and secure livelihoods on their own terms. 'As the world looks for models that combine growth with fairness, India's example stands out. Its experience shows that equality and development are not separate goals,' the release said. When supported by sound policy and inclusive intent, they move forward together, it added. (With PTI Inputs)
