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.