India has achieved a significant reduction in its poverty rate, according to recent reports. The Gini index for India is now 25.5, a notable improvement from 28.8 in 2011.
This places India fourth, behind Slovakia (24.1), Slovenia (24.3), and Belarus (24.4), while China's Gini score is 35.7 and America's is 41.8.
The Gini index measures income or wealth distribution within a country, with 0 representing complete equality and 100 representing maximum inequality. The reduction in poverty is largely due to a sharp decline in extreme poverty.
According to the World Bank, 16.2% of people lived in extreme poverty in 2011-12, which fell to 2.3% in 2022-23. During this period, 171 million people were lifted out of poverty.
Poverty rates in rural areas decreased from 18.4% to 2.8%, while in urban areas, they fell from 10.7% to 1.1%. This resulted in a reduction in the rural-urban poverty gap from 7.7% to 1.7%, indicating improvements in social equality.
This success is attributed to the government's initiatives, including the Pradhan Mantri Jan Dhan Yojana, direct benefit transfers, and schemes like Stand-Up India, which have increased financial inclusion and social security.
This achievement demonstrates India's commitment to both economic development and social equality, leading to greater prosperity and inclusivity in the country.