Modi Government Faces Backlash for Claiming India is Among the World’s Most Equal Nations

The Modi government’s claim that India is one of the world’s most equal nations has sparked criticism. Is India truly equal, or are there hidden inequalities?

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A Bold Claim, But Is It True?

When the Modi government recently proclaimed that India ranks among the world’s most equal nations, it stirred an intense debate across the country. The government pointed to improvements in income distribution, poverty reduction, and economic growth, which they believe signify a narrowing wealth gap. However, this claim has met significant criticism from various quarters, with many arguing that such optimism fails to capture the harsh realities of inequality that persist in India.

Is India really among the most equal countries, or is this just a political narrative? Let’s take a closer look at the data, explore the gaps that still exist, and understand why this debate is so critical to the future of India.

The Claim: What the Government Says

Income Equality and Gini Index

The Modi government’s primary argument for India’s high rank in equality is based on the Gini index, a measure of income inequality. According to the World Bank’s data for 2022, India’s Gini index has dropped to 25.5, down from 28.8 in 2011, signaling a reduction in income disparity. The government highlights this as evidence that India is one of the most income-equal nations in the world, claiming a rank just behind countries like Slovakia and Belarus.

Poverty Reduction Efforts

The government also cites the drastic reduction in poverty as another reason behind its claim. The World Bank’s 2025 report notes that India has lifted 171 million people out of extreme poverty between 2011 and 2023. The share of people living on less than $2.15 a day (the global extreme poverty threshold until June 2025) fell sharply from 16.2% in 2011 to just 2.3% in 2022-23. Even with the revised extreme poverty threshold of $3.00 per day, the poverty rate would be 5.3%, showing significant improvements in living standards for many.

But does this tell the whole story?

Income and Wealth Disparities

Despite the positive trends in income equality as reflected by the Gini index, the reality is far more complex. Wealth concentration remains a major issue in India.

Wealth Concentration

Recent reports from the World Inequality Database (2024) and India Today (2025) indicate that the top 1% of India’s population owns approximately 40.1% of the nation’s total wealth, while the bottom 50% holds a mere 6.4%. This wealth gap is staggering, and despite the government’s narrative of income equality, this disparity paints a very different picture.

The “Billionaire Raj”

India’s “Billionaire Raj”—a term coined to describe the extreme wealth accumulation at the top—illustrates the rising concentration of wealth among the elite. The wealth of billionaires is not only increasing but also rooted in monopolies, inheritance, and cronyism. According to Oxfam’s 2024 report, 60% of billionaire wealth is derived from such sources, raising serious questions about the true nature of wealth distribution in the country.

Educational Disparities

Education is another area where the claim of equality falls short. While literacy rates have improved over the years, access to quality education remains vastly unequal.

Literacy Rates and Teacher Distribution

According to the 2011 Census, literacy rates in rural areas were 67.77%, compared to 84.11% in urban areas. In addition, a significant portion of rural schools suffer from inadequate infrastructure, and many schools are single-teacher institutions, especially in states like Bihar and Jharkhand. In these states, single-teacher schools account for a large percentage of primary education institutions, serving high student-to-teacher ratios.
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Public Education Expenditure

Public spending on education also reflects the inequality. Rural areas receive far less funding per student compared to urban regions. For instance, 2017-18 NSS data shows that the average expenditure per student in rural areas was ₹5,240, whereas in urban areas, it was ₹16,308—three times higher. For technical courses, rural students also face substantial disparities, further limiting their opportunities for quality education.

Healthcare Disparities

Healthcare is another critical area where India’s inequality is glaringly evident. The country’s healthcare infrastructure is primarily concentrated in urban centers, leaving rural populations with limited access to medical care.

Hospital Bed and Healthcare Access

As of recent reports, urban residents, who make up 28% of India’s population, have access to 66% of the country’s hospital beds, leaving the remaining 72% of the population in rural areas with just a third of healthcare resources. BYU’s Ballard Brief (2024) also reveals that approximately 75% of India’s healthcare infrastructure is concentrated in urban areas. This stark imbalance significantly affects health outcomes, particularly in rural and underdeveloped regions.

Out-of-Pocket Expenditure

A staggering 70-80% of healthcare costs in India are paid out-of-pocket by individuals. For many living in rural areas, traveling over 100 kilometers to access a hospital is a common reality, placing healthcare out of reach for millions.

Social Inequality: Caste, Gender, and Religion

Beyond economic and educational disparities, India’s social structure continues to reflect deep-rooted inequalities, with caste, gender, and religion significantly impacting people’s access to opportunities and resources.

Caste-Based Discrimination

Despite legal protections, caste-based discrimination remains pervasive in India. Dalits and other marginalized communities continue to face exclusion from educational, economic, and social opportunities. The International Dalit Solidarity Network’s Annual Report (2024-25) highlights ongoing struggles to eradicate caste-based violence and discrimination.

Gender Inequality

India’s gender inequality is another obstacle to achieving true equality. The 2024 PLFS report reveals that only 34.7% of Indian women are active in the labor force, compared to 78.1% of men. Women also face significant barriers in political representation, with India ranking 131st in the Global Gender Gap Report (2025) for female participation in politics.

Religious Inequality

Religious minorities, particularly Muslims, face discrimination in both access to resources and opportunities. The controversial Citizenship Amendment Act (CAA) of 2024, which provides a path to citizenship for non-Muslim refugees from neighboring countries, has been widely criticized for excluding Muslims, further deepening religious divides.

The Modi government’s claim that India is one of the world’s most equal nations fails to capture the complexities of the nation’s inequality. While India has made strides in poverty reduction and some indicators of income equality, wealth concentration, disparities in education, healthcare, and deep-rooted social inequalities continue to affect millions of people.

A true measure of equality must go beyond surface-level statistics and focus on addressing these systemic issues. The reality is that India still faces significant challenges on its path to achieving genuine equality for all its citizens.

What do you think of the government’s claim? Do you agree that India is among the most equal nations, or do you think more needs to be done to address inequality? Share your thoughts in the comments below and join the conversation.
Oxfam India Report