India has achieved a Gini Index of 25.5, ranking as the 4th most equal country globally. This significant progress is attributed to welfare schemes like Jan Dhan Yojana, Ayushman Bharat, PMGKAY, and DBT, which have uplifted 171 million people out of poverty since 2011.
Understanding the Gini Index
- About: The Gini Index (or Gini coefficient) was developed by Corrado Gini in 1912.
- What It Measures: It assesses income inequality within a population.
Range
- 0 (Perfect Equality): Everyone earns the same.
- 1 (Perfect Inequality): One person earns everything.
- Range: 0–100 when presented as a percentage.
India’s Current Status
- 2011: 28.8
- 2022: 25.5 (a significant decline)
- Category: India now falls into the “moderately low inequality” group (25–30 range).
- Significance: India’s progress challenges the notion of high inequality, showcasing broad-based income growth, especially among lower-income groups.
What Drove India’s Equity Success?
Poverty Reduction
- World Bank Data: 171 million Indians lifted out of poverty since 2011.
- Extreme Poverty Rate: Dropped from 27.1% in 2011–12 to 5.3% in 2022–23.
- Number of Poor: Reduced from 344.47 million to 75.24 million.
Social Welfare Schemes and Digital Reforms
- PM Jan Dhan Yojana: Over 55.69 crore accounts opened for financial inclusion.
- Aadhaar & Digital Identity: More than 142 crore Aadhaar cards issued for secure authentication.
- Direct Benefit Transfer (DBT): Saved ₹3.48 lakh crore by reducing leakages.
- Ayushman Bharat & Digital Health Mission: Provided health coverage to 41.34 crore families.
- Stand-Up India: Encouraged entrepreneurship with ₹62,807 crore sanctioned.
- PMGKAY: Reached 80.67 crore beneficiaries with free food grains.
- PM Vishwakarma Yojana: Supported 29.95 lakh artisans with loans and training.
Challenges and Concerns Despite Equality Gains
Persistent Poverty
- Population: 28.1% remain poor at the USD 3.65/day poverty line.
Income and Wealth Inequality
- Disparity: Top 10% earn 13 times more than the bottom 10%.
Outdated Poverty Line
- Concern: India still uses the outdated Rangarajan Committee’s 2014 poverty line.
Unequal Access to Opportunities
- Gaps: Continue in education, healthcare, digital access, and employment.
Key Takeaways for Competitive Exams
- India achieves a Gini Index of 25.5, ranking 4th globally in income equality.
- Social welfare schemes like PMGKAY and DBT have significantly reduced poverty levels.
- Challenges remain in addressing income and wealth inequality in the country.
