World Bank Changes Classification Of Countries: India Is Now ‘Lower-Middle Income’ Economy

The Logical Indian

June 3rd, 2016

Source: IBTimes, economictimes  | Image Courtesy: allghananews, ibtimes

The World Bank is doing away with the decades-old nomenclatures of ‘developed’ and ‘developing’ economies to classify countries on their prosperity and standard of living. With every country becoming less homogenous, the World Bank is switching to more precise descriptions of economies.


The Classification
The classification of the countries will be based on their gross national income (GNI):

 

  • Low-income economy: Countries with GNI per capita of $1,045 or less
  • Lower-middle income economy: Countries with GNI in the range of $1,046 to $4,125
  • Upper-middle income economy: Countries with GNI in the range of $4,126 to $12,735
  • Top economy: Countries with GNI of $12,736 or more

 

There are many developing countries across the world, for instance, Mexico and Malawi are ‘developing’ countries but their characteristics differ dramatically. Under this new classification, Mexico with a GNI per capita of $9,860 is upper-middle income country and Malawi, with a GNI of $250 is a low-income economy.


Where India stands?
According to World Bank reports India has been classified under lower-middle income economy. According to  IBTimes, it has got the same tag along with countries like Lesotho, Zambia, Honduras, Ghana, Guatemala and Djibouti. All the other countries in the BRICS — Brazil, Russia, China, South Africa — belong to upper-middle income group.

Bangladesh, Bhutan, Pakistan, Myanmar are in the same group with India.

According to the World Bank, India lacks in the world indicators like labour force participation rate, electricity generation and access to better sanitation facilities. In spite of these changes in terminology, the institutions like UN, other economists, politicians and media houses may still keep referring countries to the old ‘developed’ or ‘developing’.


The Logical Indian urges the government of India to bring more transparency and set new reforms to regulate the economy. We have a long journey to take before we can be actually deemed as developed.

 

Share your thoughts..

Propelled by

VOLVO

Make Your City Safe

Related Stories

World Debt Reaches All Time High Of $164 Trillion

Indian Economy Needs To Grow By 8% For 30 Yrs For India To Become A Middle-Income Country

India Has The 12th Worst Infant Mortality Rate Among 52 Low-Income Countries In The World

Retirement

India Worst Country Among Large Economies For People To Retire: Report

India Ranks 60th In Inclusive Development Index

India Ranks 60th, Below Bangladesh And Pakistan, In Inclusive Development Index

India Has Reportedly Passed The United Kingdom In Terms Of Economy For The First Time In Over 100 Years

Latest on The Logical Indian

Others

Another Madhya Pradesh Farmer Dies At Mandi Waiting To Sell His Crop

News

Labour Party Calls For Removal Of Vedanta From London Stock Exchange After Thoothukudi Incident

Health

Nipah Virus Did Not Spread Through Bats; Bihar, Sikkim Issue Advisory: Reports

Others

70% Ganga Will Be Clean By 2019: Nitin Gadkari

News

Ministry of I&B To Set Up Social Media Monitors in 716 Indian Districts

News

CBI Grills Sify Technologies Staff in SSC Paper Leak Case