List of 5 Most Equal Countries

The recent World Bank report has shown a great fact about world income equality: Now India is the 4th most equal nation on the planet, with a Gini Index of 25.5 in 2022. It is a remarkable situation for a nation of the size, diversity, and economic complexity of India.

What is the Gini Index?

The Gini Index is a standard income inequality measure ranging from 0 (equality) to 100 (most unequal). A lower Gini reading signifies a more equal distribution of income. India's reading of 25.5 ranks it in the "moderately low" inequality category, just below the "low inequality" category for those below 25.

Top 5 Most Equal Countries in the World (According to Gini Index)

The following are the leading countries with the lowest income inequality based on the World Bank statistics and recent studies:

India’s Progress in Income Equality

India's Gini Index has improved remarkably over the last decade—from 28.8 in 2011 to 25.5 in 2022—showing a consistent reduction in income inequalities. This is all the more remarkable given the high economic growth rate of India and the large population.

How has India accomplished this?

The World Bank credits some of the most significant reasons for India's success in narrowing income inequality:

Massive Poverty Alleviation: Between 2011 and 2023, India took about 171 million out of extreme poverty. The percentage of individuals living below the international extreme poverty line of $2.15 per day fell from 16.2% during 2011-12 to merely 2.3% during 2022-23.

Targeted Social Policies: Welfare programs of the government have focused on expanding access to credit and direct benefit transfers to the poor. Major schemes include Pradhan Mantri Jan Dhan Yojana (financial inclusion), Direct Benefit Transfers (DBT), and Ayushman Bharat (health insurance).

India Compared to Other Major Economies

India's Gini Index of 25.5 is much better than that of many large economies:

India's higher ranking than all G7 and G20 nations is a dramatic measure of its relative income equality.

Income equality is vital for social stability, economic opportunity, and inclusive development. India's success proves that an economically large, heterogeneous, and fast-growing nation can bring down income imbalances successfully through concerted policies and continuity of efforts.

India's status as the 4th most equal nation in the world is a milestone achievement that is a product of decades of poverty reduction, widening social welfare, and inclusive growth. India has a Gini Index of 25.5, placing it above major economies such as the US, China, and all G7 countries, providing evidence for a model of economic progress being equitably distributed throughout society.