According to a World Bank report released in 2025, India ranks fourth globally in income equality with a Gini coefficient of 25.5, placing it ahead of major economies such as the United States and China. Only Slovakia, Slovenia, and Belarus have lower income inequality scores. The report highlights a significant reduction in extreme poverty in India, which fell from 16.2% in 2011-12 to 2.3% in 2022-23, with approximately 171 million Indians lifted out of extreme poverty during this period. This progress is attributed to strong social welfare programs and sustained economic growth. India’s ranking surpasses all G7 and G20 nations, signaling a notable shift toward a more inclusive society. However, some economists and political commentators have cautioned that the consumption-based Gini Index may not fully capture the complexities of inequality in India, and some opposition parties have challenged the claim that India is among the most equal societies globally. Despite these critiques, the World Bank classifies India’s inequality level as “moderately low,” nearly entering the “low inequality” category, reflecting a measurable improvement in income distribution over the past decade.