In a sharp and comprehensive rebuttal, the Congress party on Sunday firmly rejected the central government’s assertion that India is now “among the world’s most equal societies.”
This claim, based on India’s Gini Index score of 25.5 and cited in a recent press release by the Ministry of Information and Broadcasting, has sparked considerable criticism — with Congress branding it not only misleading but dangerously disconnected from the harsh economic realities faced by millions of Indians, particularly the poor and working-class citizens.
Congress general secretary Jairam Ramesh led the charge, stating unequivocally, “No country where nearly 28.1% of the population lives in poverty can make a justifiable claim to being among the most equal societies in the world.”
His comment reflects growing concern that the central government is prioritising narrative control over confronting the genuine socio-economic challenges experienced by large segments of India’s population.
The Roots of the Dispute: Data, Spin, and Ground Realities
The government’s claim originates from the World Bank’s “Poverty and Equity Brief for India”, released in April 2025. The report includes statistical insights that the government has selectively highlighted to promote its welfare narrative.
The press release hailed India’s position as fourth globally in terms of income equality — based on the Gini Index — and praised various welfare schemes for what it claims is a sharp decline in poverty.
However, Congress has raised serious concerns regarding both the interpretation and presentation of this data. The party argues that the government’s portrayal of India as a nearly equal society is “staggeringly out-of-touch” with the economic difficulties faced by ordinary citizens, especially in rural and marginalized communities.
“The poor are not looking for data manipulation or international rankings. They want jobs, fair wages, affordable food, housing, and healthcare. If we look beyond the spreadsheets, we see a society grappling with rising inequality, stagnant wages, and economic insecurity,” Congress said in a statement.
Key Flaws in the Government’s Claims, According to CongressPoverty Line Controversy:
The government used a poverty line of $3/day (in purchasing power parity terms) to assert that only 5.3% of India’s population remains poor. But Congress has pointed out that when using the World Bank’s official lower-middle-income poverty line of $3.65/day,
India’s poverty rate jumped to 28.1% as of 2022.Wage The party cited data from 2023–24 showing that the median earnings of the top 10% were 13 times higher than those of the bottom 10%, underscoring severe wage inequality — a reality the government’s narrative fails to address.Misuse of PPP Conversion:
Congress criticised the government’s choice to use a 2021 PPP conversion factor instead of the 2017 version, which it claims inflates poverty reduction figures and masks the true extent of deprivation.
Data Quality and Transparency:
The party highlighted that the government’s statistics are based on limited and outdated data, compounded by the fact that India has not conducted a full Population Census since 2011. The next census has been delayed until 2027, further contributing to uncertainty and policy blind spots.
Lack of Updated National Poverty Line:
India has not revised its official poverty threshold since the 2014 Rangarajan Committee report, despite a decade of economic and inflationary changes. “This confusion and opaqueness only deepen inequality,” Ramesh said.
Concerns for the Common Man: Inequality Is Not Just a Statistic
Congress underscored that inequality is no longer an academic issue — it is now visibly impacting millions of lives. With food inflation, job scarcity, stagnant rural wages, and growing informal employment, the poor are being pushed further to the margins.
“India’s economic growth has become lopsided — benefiting the top 1% while burdening the working class with higher taxes, reduced protections, and precarious livelihoods,” the statement noted.
The party stressed that fiscal policies under the Modi government — including what it called a “regressive and poorly implemented GST,” corporate favouritism, and “tax terrorism” on small businesses — are contributing to the widening chasm between the privileged few and the struggling majority.
Congress Proposes Targeted Solutions to Uplift the Poor
As a part of its policy roadmap, Congress recommended a series of pro-people reforms aimed at restoring balance and dignity to India’s economic structure:
-
Strengthening MGNREGA, increasing both funding and wages to ensure rural employment security.
-
Expanding the National Food Security Act (NFSA) to include at least 10 crore more people currently outside the system.
-
Direct income support schemes for vulnerable households to boost purchasing power and cushion economic shocks.
-
Conducting the overdue Population Census to ensure targeted policy delivery and accurate poverty mapping.
-
Restructuring the GST regime to reduce its regressive burden on daily essentials.
-
Ending crony capitalism by ensuring transparency and fairness in public contracts, subsidies, and bailouts.
A Stark Disconnect Between Rhetoric and Reality
While the Ministry of Information and Broadcasting credits the decline in poverty rates to initiatives such as PM Jan Dhan Yojana, Aadhaar, Direct Benefit Transfer (DBT), Ayushman Bharat, PM Garib Kalyan Anna Yojana, and PM Vishwakarma Yojana, Congress cautioned against “triumphalist storytelling” that ignores structural inequality.
“In a country where a significant section of the population still depends on subsidised rations to survive, celebrating ‘equality’ while ignoring hunger, joblessness, and poor public health is not just inaccurate — it’s unethical,” the statement concluded.