Why in the news
A World Bank report placed India among the world’s most equal societies on the Gini measure, although experts questioned whether weak data and method choices hide the real level of inequality.
Key facts
- Gini index 2022-23: 25.5, rank 4th; only the Slovak Republic, Slovenia and Belarus score better.
- The index measures income or consumption inequality; 0 is perfect equality and 100 is absolute inequality.
- India falls in the moderately low inequality band (25 to 30) and is near the low band (below 25).
- Calculation used consumption expenditure data.
- 171 million people exited extreme poverty between 2011 and 2023.
| Country | Gini score |
|---|
| India | 25.5 |
| UK | 32.4 |
| China | 35.7 |
| United States | 41.8 |
Extreme poverty
- Share below $2.15 a day: 16.2% (2011-12) to 2.3% (2022-23).
- Under the revised $3 a day line: 5.3%.
Drivers cited
| Programme | Reported figure |
|---|
| PM Jan Dhan Yojana | 55 crore+ bank accounts |
| Aadhaar and DBT | ₹3.48 lakh crore saved |
| Ayushman Bharat | 41 crore+ health cards, ₹5 lakh cover |
| Stand-Up India | ₹62,807 crore sanctioned to SC/ST and women entrepreneurs |
| PMGKAY | Food grains to 80 crore beneficiaries |
| PM Vishwakarma Yojana | Nearly 30 lakh artisans registered |
Concerns
- Economists point to data limitations, sampling flaws and methodological choices that may understate inequality.
Exam angle
- Gini range: 0 to 100; India 25.5 in 2022-23.
- Top three ahead of India: Slovak Republic, Slovenia, Belarus.
- New poverty line mentioned: $3 per day.