India's Gini Index: A Misleading Measure of Equality

"FOCUSED Government Initiatives drive India to become the 4th most equal country in the world", the headlines news in most of the news papers in India, boasting that India is ahead of China and the United States and many advanced countries.

- PROMOD DAS

India's Gini Index stands at 25.5 as reported by the World Bank, showing a moderately low level of income inequality. This ranking places India fourth globally in terms of income equality, surpassing countries like the United States (41.8) and China (35.7) and it is more equal than every G7 and G20 countries. Many of these countries are considered as advance economies. It is also claimed that "India is not only the fourth-largest economy but also the most equal societies today. This is a remarkable achievement of a country of its size and diversity. It reflects how India's economic progress is being shared more evenly across its population. Behind this success is the consistent policy focus on reducing poverty, expanding financial access and delivering welfare support directly to those who need it most. According to Government India's strong standing on Gini Index or Gini Coefficient is not a coincidence, it is linked to country's sustained success in reducing poverty across both in rural and urban regions. Some of the key schemes and initiatives those have helped in achieving long standing gap include PM Jan Dhan Yojana, Adhar and Digital Identity, Ayushman Bharat, Stand-up India, Pradhan Mantri Garib Kalyan Anna Yojana to name a few".