India ranks 4th in global income equality: A silent economic revolution

India has surged to 4th place globally in income equality, according to a new World Bank report—surpassing nations like China and the U.S.

Transcript

00:00India is now officially among the most income-equal countries in the world.

00:04This is a very big deal.

00:05Let me explain why.

00:07So according to a new World Bank report, India ranks fourth globally on income equality,

00:11with a Gini index of 25.5 in 2022, a dramatic improvement from 28.8 in 2011.

00:18For context, the Gini index is a way to measure income inequality.

00:21The lower the score, the more equal the income distribution.

00:25And yes, this puts India ahead of countries like China, the United States and many G7

00:29nations.

00:30The World Bank credits this shift to a sharp decline in extreme poverty, thanks to targeted

00:34welfare programmes and financial inclusion.

00:37The percentage of Indians living on less than $2.15 a day dropped from 16.2% in 2011-2012

00:44to just 2.3% in 2022-2023.

00:47How?

00:48Through schemes like Jan Dhan Yojana, which brought over 556 million people into the formal banking

00:53system, and the use of Aadhaar-enabled direct benefit transfers that have sent more than

00:583.48 lakh crore directly to beneficiaries' accounts.

01:01On top of that, over 41 crore Ayushman Bharat health cards have been issued, expanding access

01:07to basic health care.

01:08What does this mean for everyday Indians?

01:11It means that more people are being lifted out of poverty and fewer are being left behind.

01:16The rich-to-poor gap is shrinking, not just on paper but in real lives.

01:20And while there's still a long road ahead to tackle wealth inequality and job creation,

01:24the data shows India is taking serious steps towards inclusive growth.