Gujarat Enters World Bank's Upper-Middle Income Band; India Stays in Lower-Middle Income Category
Summarized by AI; it may make mistakes. Check important info
Summarized by AI; it may make mistakes. Check important info
Gujarat has reportedly emerged among top 5 India's upper-middle-income states in an indicative comparison with the World Bank's latest income classification, while India as a whole continues to remain in the lower-middle-income category.
The World Bank's annual income update, released on July 1, upgraded six countries to higher income groups, but India did not make the cut, as per an analysis by Money Control.
Gujarat secured 5th place among India's Top Earners
States | Upper-Middle-Income Per capita ($) |
Delhi | 6,127 (₹5,81,845) |
Karnataka | 5,579 (₹5,29,804) |
Telegana | 5,407 (₹5,13,470) |
Tamil Nadu | 5,329 (₹5,06,063) |
Gujarat | 4,734 (₹4,49,560) |
India Remains in Lower-Middle Income Category
Despite being one of the world's fastest-growing major economies, India continues to remain in the World Bank's lower-middle-income category as its Gross National Income (GNI) per capita remains below the threshold required for an upper-middle-income classification.
States That Narrowly Missed the Cut
Three major states reportedly missed the World Bank's upper-middle-income threshold:
- Maharashtra: $4,628 — just $8 short
- Haryana: $4,627 — $9 below the benchmark
- Kerala: $4,610 — $26 below the cut-off
Lowest-Income States
At the other end of the spectrum, Bihar remained India's poorest major state with an estimated per capita income of US$984 (₹93,444), followed by Uttar Pradesh at US$1,403 (₹1,33,234) and Jharkhand at US$1,470 (₹1,39,597), as per reports.
Notably, the estimated per capita income of Bihar, Uttar Pradesh and Jharkhand remains lower than that of neighbouring Nepal and several Sub-Saharan African economies
World Bank Income Categories
The annual classification, released by the World Bank's Development Data Group on July 1, is based on Gross National Income (GNI) per capita calculated using the World Bank Atlas method.
The updated list covers 218 economies and will remain effective until June 2027.
For the 2027 fiscal year, the World Bank classifies:
- Low-income economies: GNI per capita of $1,175 or less
- Lower-middle-income economies: $1,176–US$4,635
- Upper-middle-income economies: $4,636–US$14,375
- High-income economies: Above $14,375
