India Surpasses US and China in Economic Equality Index

India has outperformed both the United States and China in terms of economic equality, according to a recent World Bank report. The study highlights a notable improvement in income distribution in India between 2011–12 and 2022–23, placing the country among the most economically equal nations.

 

The report states that India’s income inequality, measured by the Gini index, saw a significant decline from 16.2% in 2011–12 to just 2.3% in 2022–23. This sharp drop indicates a narrowing gap between the highest and lowest income groups. In comparison, the Gini index stood at 25.5% in the United States and 35.7% in China during the same period, with the global average being 41.8%.

 

The findings reveal that India now ranks among the top countries where the gap between the rich and the poor is minimal. The improvement has been attributed to a combination of policy measures, welfare schemes, and economic reforms aimed at uplifting lower-income groups.

 

In addition, the report notes that the world’s lowest income inequality was recorded in nations where social welfare programs are robust and income redistribution mechanisms are well-implemented. India’s performance in reducing inequality has drawn international attention, with experts suggesting that its model could serve as a reference for other developing economies.

 

The World Bank also pointed out that between 2011–12 and 2022–23, the share of income held by the top 10% of India’s population decreased significantly. Projections suggest that if current trends continue, India’s economic equality will remain stable through 2025, further strengthening its position in global rankings.