Explanation – The Gini coefficient is a commonly used measure of income inequality, with higher values indicating greater inequality. If a country’s Gini coefficient has increased over time, it implies that the gap between the rich and poor has widened, meaning that the distribution of income has become more unequal. The coefficient ranges from 0 (0%) to 1 (100%), 0 representing perfect equality and 1 representing perfect inequality. Higher the value of Gini coefficient, higher the inequality.

Source: Forum IAS