- The World Bank warned that despite being the fastest-growing major economy, it will take India 75 years for its per capita income to reach a quarter of U.S. income levels if current trends continue.
- World Development Report places India among over 100 countries, including China, at risk of falling into the “middle-income trap.”
- Countries such as China, India, Brazil, and South Africa face significant obstacles in becoming high-income nations.
- The World Bank observed that countries typically hit a “trap” at around 10% of annual U.S. GDP per person, equivalent to $8,000 today, which falls within the “middle-income” range.
- As of now, 108 countries are classified as middle-income, with annual GDP per capita between $1,136 and $13,845.
- These nations are home to six billion people, 75% of the global population, with two-thirds living in extreme poverty, yet they generate over 40% of global GDP.
- The World Bank emphasized that the future poses even greater challenges, such as ageing populations and environmental sustainability, necessitating a fresh approach to escape the ‘middle-income trap.’
Dig Deeper: List various important reports and indexes released by the World Bank
