Ever thought about why the rich becoming richer and the poor becoming poorer? Well, this is because of the unequal distribution of resources in the population of a particular country. The primary example of resources which is not being equally distributed is income. To understand the gap between the haves and haves not of society, and also to compare the income as well as wealth across societies, Gini Index is a tool for summarizing the whole economic data. The Gini index is a measure of statistical dispersion, commonly used to represent the inequality of a probability distribution. Gini index even helps us to analyze the salary structure of an organization. It is not really important that how income is unevenly distributed in the past, but it is important for us to know whether the distribution is becoming more or less unequitable in the present and for that matter this paper will provide a detailed information about Gini Index. In this research paper of Gini Index, you will get to know about the historical background, implications of Gini index, limitations, present status of Gini index in India.