Part of: National Current Affairs · See also: UPSC syllabus · UKPSC syllabus
Recently, the World Bank released its October 2026 Poverty and Equity Brief for India. It puts India’s Gini index at 23.0 for 2023. In comparison, it stood at 28.8 in 2011–12. Notably, a lower score means a more equal distribution. However, the index measures consumption, not income.
What the October 2026 World Bank Brief Says
The brief draws on the South Asia Micro Database (SARMD). In turn, SARMD uses three official surveys: CES 2011–12, HCES 2022–23 and HCES 2023–24. Moreover, extreme poverty at USD 3.00 a day (2021 PPP) fell to 2.6% in 2023. It stood at 27.1% in 2011. Similarly, poverty at the USD 4.20 line dropped from 57.7% to 16.1%. As a result, about 496 million people moved above that line.
Consumption Gini, Not an Income Gini
Importantly, the World Bank itself flags limits of the data. It notes that surveys “may also not fully capture the consumption of wealthier households.” Hence, the Bank adds that they “are likely to understate inequality.” Meanwhile, wage data tell a sharper story. In 2023, median earnings of the top 10% of workers were about 13 times those of the bottom 10%. Therefore, experts caution against comparing India’s consumption Gini with income-based scores of other countries.
How India Compared in the 2025 Ranking
Earlier, in July 2025, PIB cited World Bank data putting India’s score at 25.5 for 2022. Then, India ranked as the fourth most equal country. Only the Slovak Republic, Slovenia and Belarus ranked ahead. By contrast, China scored 35.7 and the United States 41.8.
About the Gini Index
Basically, the Gini index measures how evenly income, wealth or consumption spreads across a population. It runs from 0 to 100. Here, 0 means perfect equality, while 100 means one person holds everything. Also, statisticians derive it from the Lorenz curve.
India’s Gini Index: Key Facts for Revision
- Latest value: 23.0 (2023), World Bank brief, October 2026
- Earlier values: about 28.8 (2011–12); 25.5 (2022)
- Basis: Household consumption, not income
- Surveys used: CES 2011–12, HCES 2022–23 and HCES 2023–24
- Extreme poverty: 2.6% in 2023, down from 27.1% in 2011
Why India’s Gini Index Matters for UPSC and UKPSC
Notably, examiners often test the difference between consumption and income inequality. So, remember the 23.0 score, the survey base and the World Bank’s own caveat. Also, link this index with the poverty data in the same brief. For official updates, also visit the World Bank. Next, for a related story, read about 496 million Indians moving out of poverty.
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