India's Journey Towards Income Equality: A Decade of Progress
The World Bank report reveals India's significant reduction in income inequality, ranking it as the fourth-most equal country globally. Initiatives like PM Jan Dhan Yojana and Direct Benefit Transfer contributed to reducing extreme poverty, with India's Gini Index now at 25.5, reflecting consistent progress in economic and social equity.
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- India
According to a recent World Bank report, India's income inequality has significantly decreased over the past decade, making it the fourth-most equal country globally. This progress is part of a broader trend that has also seen a sharp reduction in extreme poverty in the country.
The government attributes this achievement to various initiatives, including PM Jan Dhan Yojana and Direct Benefit Transfer schemes, which aim to improve financial access and deliver welfare efficiently. In 2022, India's Gini Index stood at 25.5, a marked improvement compared to China's 35.7 and the USA's 41.8.
World Bank data shows that 171 million Indians have been lifted out of extreme poverty in the last decade, reducing the percentage of those living on less than USD 2.15 a day from 16.2% to 2.3%. As a result, India is now on the cusp of joining the 'low inequality' category, highlighting the effectiveness of its policies in combining economic growth with social equity.
(With inputs from agencies.)
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