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India Ranks Fourth in Global Income Equality as Opposition Accuses Government of Distorting Data

Congress says reliance on consumption data has hidden deeper income gaps, underplaying poverty in World Bank figures

Congress leader Jairam Ramesh attacked the centre over World Bank's Poverty and Equity Brief for India.
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Overview

  • World Bank’s Spring 2025 Poverty & Equity Brief shows India’s Gini Index dropped from 28.8 in 2011 to 25.5 in 2022, placing it fourth globally behind the Slovak Republic, Slovenia and Belarus.
  • India’s 25.5 Gini score outpaces all G7 and G20 nations, significantly undercutting China’s 35.7 and the United States’ 41.8.
  • The government credits its flagship programmes—PM Jan Dhan Yojana, Aadhaar-enabled direct benefit transfers and Ayushman Bharat—for lifting 171 million people out of extreme poverty and narrowing income gaps.
  • Congress general secretary Jairam Ramesh says reliance on consumption-based metrics understates India’s true poverty rate under a $3.65/day benchmark and overlooks high wage disparities.
  • Data sampling changes in household surveys may underestimate consumption inequality, prompting demands for updated poverty thresholds and expanded welfare schemes.