Middle income trap could hinder progress in India alongside other developing countries: World Bank report

More than 100 countriesincluding China, India, Brazil, and South Africaface serious obstacles that could hinder their efforts to become high-income countries in the next few decades, according to a new World Bank study that provides the first comprehensive roadmap to enable developing countries to escape the middle-income trap. Drawing on lessons of the past 50 years, the World Development Report 2024 : The Middle Income Trap finds that as countries grow wealthier, they usually hit a trap at about 10% of annual U.S. GDP per personthe equivalent of $8,000 today. Thats in the middle of the range of what the World Bank classifies as middle-income countries. At the end of 2023, 108 countries were classified as middle-income, each with annual GDP per capita in the range of $1,136 to $13,845.