Risk of India falling into middle-income trap is low \ stacker news ~econ

Risk of India falling into middle-income trap is low www.businesstoday.in/india/story/risk-of-india-falling-into-middle-income-trap-is-low-444264-2024-09-03

677 sats \ 15 comments \ @Coinsreporter 4 Sep econ

India may not get caught up in the middle-income trap as its growth momentum is unlikely to slow down, but it will have to continue with its policies and reforms to transform into a high-income country, said Auguste Tano Kouamé, World Bank's Country Director in India.

“I don’t think the middle-income trap is a risk for India…For India, the risk has decreased,” Kouamé said on Tuesday, pointing out that the Indian economy has been dynamic in the past few years. He also underlined that India’s has been a story of success despite adversity.

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145 sats \ 1 reply \ @IamSINGLE 4 Sep

I also feel that the risk for falling into the MI trap for India are getting lower. Before a year it looked like India might fall in the trap. But now it's a sukrity with the way this government is keeping up with reforms.

For Indian conditions, I've got a simple diagram. India actiay does not need high income levels to be called a developed country. In reality the expenses here are much lower in comparison to China and to USA and EU, they are much much lower. https://m.stacker.news/49833

44 sats \ 0 replies \ @Coinsreporter OP 4 Sep

You've described it very well. I agree that India doesn't actually require to have income in $5k zone to be a developed country or to save it from middle income trap. In big cities an income of $1000 (Inr 83000) would still make you in the top 10% if not 5%. With this income, a person can lead a happy life in big cities with almost everything like a car and a good apartment, good education for kids, and other needs also sufficiently provided for. In towns, an income of $1k would put you in the elites.

231 sats \ 1 reply \ @TheMorningStar 4 Sep

The risk has only decreased as said so, the danger of falling into the trap still is there! If anything goes wrong with the economi. policy now, the first we'll be talking about the middle class trap. I also belong to a middle class (or so j assume). My family income is 40k InR and living in a town. Our fouty thousand are so sufficient now.

If I add 10% inflation rvery year, the middle class income for India shoud be anywhere between 100k inr to 110 Inr which I think Indians will easily be earning by 2035.

0 sats \ 0 replies \ @Coinsreporter OP 4 Sep

So true! The Indian economy has been growing with a lots and lots of poor people. What about them? Will they reach at middle class income?

56 sats \ 3 replies \ @Athena 5 Sep

Do you agree with it?

0 sats \ 2 replies \ @Coinsreporter OP 5 Sep

To what?

43 sats \ 1 reply \ @Athena 5 Sep

I don’t think the middle-income trap is a risk for India…For India, the risk has decreased

0 sats \ 0 replies \ @Coinsreporter OP 5 Sep

I think that's what the article has mentioned..

63 sats \ 0 replies \ @Golu 5 Sep

There is no question of India falling in a middle income trap. Indian people never disclose their real income. Also when there are many things by which you can save taxes. The biggest benifits of tax concession is going to the Middle class.

India's growth, i think, is driven because government is not relying merely on taxes, instead it's working to earn.

55 sats \ 1 reply \ @BitcoinAbhi 5 Sep

India is growing and don't think it will somehow get caught in the trap

0 sats \ 0 replies \ @sangekrypto 5 Sep

Yes, I also have the same opinion as you, I'm not sure their opinion is like that.