World Bank says India maybe high middle-income economy in 30 yrs: What it means?
Economic reforms such as GST could turn India into a high middle-income economy in 30 years, the World Bank said on Saturday. It credited the country’s “extraordinary” achievement of quadrupling per capita income to reforms taken in the last three decades.
Last week, India moved into the top 100 of World Bank’s Ease of Doing Business global rankings for the first time due to sustained business reforms over the past several years. The report had ranked India at 130 last year.
Speaking at India’s Business Reform event organised by the ministry of commerce and industry, World Bank CEO Kristalina Georgieva said: “We have learnt that in reforms what pays off is persistence... what we are recognising in India is that this success today is to be turned into more energy in reforms for the future.”
“... And I have no doubt that when India hits another century, the century of Independence in 2047, most people in India would be the part of global middle class. India will be a high middle-income country,” she said.
What is a high middle-income economy?
The World Bank considers countries of regions with a Gross National Income per capita between $3,956 and $12,235 as high middle-income economies. India currently falls in the lower middle-income category, recording a GNI per capita of $1,680 in 2016, according to World Bank data.
While lower income economies accounted for GNI per capita of $1,005 or less in 2016, lower middle-income economies were those between $1,006 and $3,955, and high income economies had $12,236 or more.
What is GNI per capita?
The UN terms Gross National Income as all value added by domestic producers, plus any product taxes (sans subsidies) that haven’t been included in output and the net income received from abroad.
GNI per capita is derived from the gross national income with respect to the country’s population, and can indicate the standard of living enjoyed by its average citizen.
The World Bank measures GNI per capita in US dollars by converting local currency using its World Bank Atlas method. Population estimates are also calculated by demographers of the 189-member group.
Where do other countries rank?
Pakistan, Sri Lanka and Bangladesh are among the countries listed as lower middle-income economies, along with India. China and Brazil are upper middle-income economies, while Nepal falls in the low-income category.
The high-income category has countries like the United States, United Kingdom, Japan, Norway and the UAE.
(With PTI inputs)