Middle-income countries like India need to make policies based on reliable data to get into the league of high-income nations in next 3-4 decades as achieving sustainable growth will become harder, World Bank chief economist Indermit Gill said on Thursday. Addressing an event here, Gill said, to grow into higher-income countries, MCIs (Middle Income Countries) will have to reduce deficits in their mid-sized firms.
"(Going forward) economic growth will get harder for middle-income countries like India, not easier... If you (middle-income countries like India) want to get into high-income country in the next 3-4 decades then you will have to make policies based on reliable information," he said.
Gill pointed out that relatively few countries (31) have grown into high-income countries between 1990 and 2021.
Prime Minister Narendra Modi has set an ambitious target of making India a developed nation by 2047.
According to the World Bank, the world's middle-income countries (MICs) are a diverse group by size, population, and income level.
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They are defined as lower middle-income economies -- those with a GNI (Gross National Income) per capita between USD 1,036 and USD 4,045; and upper middle-income economies -- those with a GNI per capita between USD 4,046 and USD 12,535.
Middle-income countries are home to 75 per cent of the world's population and 62 per cent of the world's poor.
At the same time, MICs represent about one-third of global GDP and are major engines of global growth.
Countries with annual per capita income of over USD 12,000 are defined as high-income economies.
Source Name : Economic Times