No nation with 28% poverty can declare to be fourth most equal on this planet: Congress

No nation that has a poverty charge of 28.1%, as India did in 2022 based on the World Bank, could make a “justifiable” declare to being one of the vital equal societies on this planet, the Congress mentioned in a press release on Sunday (July 6, 2025). It urged the federal government to replace the official poverty measure to higher replicate the nation’s financial actuality.

As per a report by the World Bank launched in April, and highlighted by a Union authorities press launch on July 5, India’s consumption-based Gini coefficient of inequality fell to 25.5 in 2022-23 from 28.8 in 2011-12. According to the Centre, this makes India “the fourth most equal nation on this planet”, behind the Slovak Republic, Slovenia, and Belarus.

Wage disparity

On Sunday (July 6, 2025), nevertheless, the Congress identified different features of the World Bank’s report, which the federal government press launch didn’t point out — excessive wage disparity in India, and a potential purpose for the autumn in consumption inequality.

“Wage disparity in India is excessive, with the median earnings of the highest 10% being 13 occasions increased than the underside 10% in 2023-24,” the Congress mentioned in its press assertion, citing the identical World Bank report from April. 

Consumption survey adjustments

The World Bank report added that “sampling and knowledge limitations counsel that consumption inequality could also be underestimated”, a incontrovertible fact that the Congress highlighted.

The World Bank additional mentioned that adjustments within the questionnaire design, survey implementation, and sampling within the 2022-23 Household Consumption Expenditure Survey are enhancements, but in addition “current challenges for making comparisons over time”.

“It is value recalling that these adjustments had been made after the Government rejected the earlier iteration of the survey (performed in 2017-18) after it confirmed falling consumption in rural areas,” the Congress mentioned. “As a decrease middle-income nation, the suitable charge to measure poverty in India is that of $3.65/day.” 

Using this measure, the World Bank says India’s poverty charge stood at 28.1% in 2022. 

‘Update poverty line’

“No nation that has a poverty charge of 28.1% could make a justifiable declare to being one of the vital equal societies on this planet,” the Congress assertion mentioned. “The report is subsequently moderately clear: poverty stays concerningly excessive, and so does inequality.” 

Among the Congress’ a number of ideas to handle this subject was for the federal government to replace its official poverty line, one thing that had not been tried because the Rangarajan Committee submitted its report in 2014.

“Sharpening inequality is now firmly embedded within the nature of our financial progress and its trajectory fueled by the Modi Govt’s insurance policies and the widening hole between the privileged few and the dispossessed many can now not be denied,” the Congress mentioned.