India Is Not the 4th Most Equal Country – Media Misreports World Bank Data

July 8, 2025: Several major Indian newspapers — including The Hindu, Business Standard, The Times of India, and The Indian Express — incorrectly claimed that India is the fourth most equal country globally, citing a recent World Bank report. In truth, India ranked 176th out of 216 countries in 2019 in terms of income equality. This serious misrepresentation originates from a Press Information Bureau (PIB) release that misreads a World Bank brief — a mistake picked up and repeated by several national media outlets without data verification or proper analysis.

Statistical Error: Consumption and Income Ginis Are Not Comparable

The PIB highlights India’s consumption-based Gini index of 25.5 (2022–23) from the World Bank brief and uses it to place India among the world’s most equal countries. However, this figure reflects consumption inequality, not income inequality — the standard metric for international comparisons. Since the wealthy save more of their income, consumption appears more evenly distributed than income, making consumption-based Ginis typically lower. Thus, comparing India’s consumption Gini with other countries’ income Ginis is misleading — a textbook example of comparing apples to oranges.

Moreover, the World Bank brief explicitly warns that India’s consumption inequality may be underestimated due to data limitations, including changes in survey design and sampling methods between 2011–12 and 2022–23. These methodological changes make meaningful comparisons over time difficult and have been widely discussed by Indian economists and statisticians.

India’s Inequality Worsens While Reporting Obscures Reality

According to the World Inequality Database, India’s income Gini index stood at 61 in both 2019 and 2023, showing persistent and rising inequality. India’s global ranking declined from 115 in 2009 to 176 in 2019, and the wealth Gini index rose to 75 in 2023, underlining deep disparities. The World Bank does not compare India’s consumption Gini with other countries, yet the PIB does so to falsely claim progress.

Even alternative indicators like per capita calorie intake — which reflect food consumption inequality — show India’s worsening position, with a rank of 102nd out of 185 countries in 2019, down from 82nd in 2009. The picture is consistent: inequality is growing across metrics.

Misreporting such serious issues is not just inaccurate — it is dangerous. It distorts public understanding, shields systemic failures, and delays urgent redistributive reforms. India needs policies that tax the rich and correct economic imbalances — and credible, responsible journalism to support that path.

Courtesy: The Wire