Gini Index
Why it Matters?
According to the World Bank, India ranks among the world’s most equal societies, with a Gini Index of 25.5, making it the fourth most equal country globally.
What You Should Know?
The Gini Index (also called Gini Coefficient or Gini Ratio) measures income or wealth inequality within a country.
It was developed in 1912 by Italian statistician Corrado Gini.
The index ranges from 0 (perfect equality) to 1 (perfect inequality).
A Gini score of 0 means everyone has equal income; a score of 1 means one person holds all the income.
The Gini Index is based on the Lorenz Curve, which shows cumulative income against cumulative population.
It measures the dispersion of income, not absolute income or wealth levels.
News:
India is behind only the Slovak Republic (24.1), Slovenia (24.3), and Belarus (24.4) in income equality.
India’s score improved from 28.8 in 2011 to 25.5 in 2022, reflecting a decade of declining inequality.
India is more equal than China (35.7) and every G7 and G20 nation.
The Gini Index places India in the “moderately low inequality” category (score between 25–30).
The Gini Index is used globally to track income distribution trends and evaluate policy outcomes related to equity.