- India's richest 10% earn less than the poorest in developed nations.
- World Bank report highlights India's pervasive low-income levels
- Efficient resource utilisation and innovation are crucial for growth.
There is a huge earnings disparity between people in developed countries and those living in developing nations, and the recent World Bank report highlighted the same. In a developing country like India, the top 10 per cent richest people are earning less than the poorest 10 per cent of people in some of the world's richest countries, according to the World Bank's 2026 Poverty and Inequality Platform.
What Does The Earning Comparison Show?
The comparison shows that the daily income or consumption threshold for the poorest 10 per cent in India is way lower than that of poor people in the United States, Canada, Germany and other developed countries.
At the other end, the richest 10 per cent in India have a daily income or consumption threshold of around $10 per person, which is many times lower than that of people living in developed countries.
Comparison Table: India Vs Wealthy Nations
Country | Poorest 10% (Daily) | Richest 10% (Daily) |
|---|---|---|
India | $3 | $10 |
United States | $25 | $173 |
Canada | $31 | $129 |
Germany | $28 | $128 |
Australia | $28 | $129 |
Earlier, the Economic Survey of India stated that an individual earning Rs 80,000 per month is among the top 10 per cent of earners in the country.
Reducing poverty alone will not lead to a prosperous India
According to an NDTV report, Ahona Dutta Gupta, Program Associate at the Foundation for Economic Development, noted that these statistics underscore a critical economic hurdle for India.
The core issue extends beyond poverty to pervasive low income levels across the economy. She highlighted that while enhancing the living conditions of low-income citizens is crucial, it alone will not drive national prosperity.
Even if poorer households reach the earnings of today's wealthier Indian families, their overall quality of life will still lag far behind that of developed nations.
Also Read: India's Foreign Exchange Reserves Slide Further, Down $51 Billion From Record High
What’s Essential To Increase Productivity And Growth
Efficient utilisation– including land, labour, and capital boosts business expansion, creates higher-paying jobs, and can elevate household incomes.
Innovation needs to be fostered, and it requires an environment where entrepreneurs can freely experiment with new business models, learn from failures, and scale successful ventures.
Additionally, simplifying business setup and expansion, ensuring a fair tax regime, and minimising bureaucratic hurdles are vital for sustainable productivity growth.