CURRENT AFFAIRS
CURRENT AFFAIRS
Description
According to the World Bank’s 2025 Report, India has secured the position of the 4th most equal country in the world, with a Gini Index of 25.5. This remarkable achievement places India ahead of major economies such as the United States (41.8) and China (35.7) in terms of income equality. What makes this milestone even more significant is that India is now also the world’s fourth-largest economy, demonstrating how inclusive growth strategies and targeted welfare initiatives have successfully narrowed income disparities across the nation.
Understanding Gini Index
Origin: The Gini Index (or Gini Coefficient) was developed by Italian statistician Corrado Gini in 1912.
Purpose: It is a widely used measure of income inequality within a population.
Scale:
0 = Perfect Equality (everyone earns the same income)
1 = Perfect Inequality (one person earns all the income)
When expressed as a percentage, the range is 0–100.
India’s Numbers:
2011: 28.8
2022: 25.5 a substantial decline that now categorizes India in the “moderately low inequality” bracket (25–30 range).
This data challenges the long-held narrative of India being a deeply unequal society and reflects broad-based income growth, particularly for low-income and marginalized groups.
Drove India’s Success In Reducing Inequality
Massive Poverty Reduction
According to the World Bank’s Spring 2025 Poverty and Equity Brief, 171 million Indians have moved out of extreme poverty since 2011.
The poverty threshold was revised from USD 2.15/day to USD 3/day to adjust for inflation and living costs.
At this benchmark, India’s extreme poverty rate fell from 27.1% in 2011–12 to 5.3% in 2022–23.
Numbers in perspective:
2011–12: 344.47 million poor
2022–23: 75.24 million poor
This reduction is one of the largest poverty alleviation achievements globally in recent decades.
Expansive Social Welfare Schemes & Digital Reforms
India’s welfare-driven development model has been key to creating an inclusive economy:
PM Jan Dhan Yojana - 55.69 crore bank accounts opened, ensuring financial inclusion and direct access to welfare benefits.
Aadhaar & Digital Identity - 142+ crore Aadhaar cards issued, making subsidy transfers, authentication, and welfare delivery more efficient.
Direct Benefit Transfer (DBT) - Eliminated leakages, saving the government Rupees 3.48 lakh crore.
Ayushman Bharat & Digital Health Mission - 41.34 crore Ayushman cards issued, offering Rupees 5 lakh health coverage per family.79 crore digital health accounts created, advancing healthcare access.
Stand-Up India - 2.75 lakh loans worth Rupees 62,807 crore sanctioned to SC/ST and women entrepreneurs, promoting self-reliance.
Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) - Provided free food grains to 80.67 crore people, ensuring food security.
PM Vishwakarma Yojana - 29.95 lakh artisans registered, receiving loans, training, and digital support.
These programs have created a foundation for equality, reducing the gap between urban and rural India.
Challenges Despite Equality Gains
While India’s equality score is impressive, several underlying challenges remain:
Persistent Poverty
At the USD 3.65/day benchmark (for lower-middle-income countries), 28.1% of India’s population still lives in poverty—over 300 million people.
Income & Wealth Gaps
Top 10% of earners make 13 times more than the bottom 10%.
The richest 1% own 40% of the nation’s wealth, while the bottom 50% hold just 3%.
Historical Trend: Gini coefficient for income rose from 0.371 in 1955 to 0.410 in 2023, showing a long-term concern about wealth distribution.
Outdated Poverty Line
India still uses the Rangarajan Committee’s 2014 poverty line, which no longer reflects today’s cost of living.
Without an update, targeting welfare benefits remains a challenge.
Unequal Access to Opportunities
Significant gaps persist in education, healthcare, employment, and digital access.
Vulnerable groups women, rural communities, SC/ST populations, and informal workers face barriers to upward mobility.
The Bigger Picture: What India’s Equality Means Globally
India’s improved equality ranking sends a powerful message:
Inclusive growth is possible even in large, diverse, and complex economies.
India’s digital-first welfare model is being studied by nations in Africa, Asia, and Latin America.
However, the future challenge lies in moving from consumption equality (ensuring everyone can access basic needs) to opportunity equality (ensuring fair access to education, jobs, and resources).
Welcome to Notopedia.com, your free learning platform that caters to the diverse needs of students and aspirants across a spectrum of entrance exams and educational endeavors. Whether you're preparing for highly anticipated exams like CAT, NEET, JEE Main, or bank job vacancies, our platform offers a wealth of resources to guide you towards success. Stay up-to-date with the latest exam dates, announcements, and results for various government recruitment exams, including SSC CGL, CHSL, NDA, and UPSC. Explore comprehensive study materials, sample papers, and exam patterns to hone your skills and boost your confidence. From important dates like CBSE Class 10 and 12 date sheets to exam-specific information like JEE Main application form date, we cover it all. Notopedia.com is your go-to source for everything from admissions and admit cards to scholarships and college information. Whether you're aiming for a career in defense, government, banking, or higher education, our free learning platform equips you with the knowledge and resources you need to excel. Join us in your educational journey and unlock a world of opportunities, guidance, and comprehensive support.
For more Updates and Information - Visit Notopedia's Bulletin Board
For Latest Sarkari Jobs - Visit Notopedia's Sarkari Jobs Section
For access to more than 20,000 Colleges - Visit Notopedia's College Section
For School Studies and Exams Preparation across 14 Boards - Visit Notopedia's School Section
For Comprehensive Preparation of Sarkari Job Exams - Visit Notopedia's Sarkari Exams Section
