A World Bank report has highlighted the wide income gap between India and developed countries. According to the 2026 Poverty and Inequality Platform, India’s richest 10% earn less than the poorest 10% of people in several wealthy nations. The findings reveal the low income levels across India’s economy. They also highlight the challenges India faces in improving living standards and achieving economic prosperity.
Poverty Reduction Alone Cannot Ensure Prosperity
The report compares the daily income or consumption levels of people in India with those in countries such as the United States, Canada, Germany and Australia. It estimates that the poorest 10% in India have a daily threshold of around $3 per person. Meanwhile, India’s richest 10% have a threshold of approximately $10 per person. In comparison, the poorest 10% in the United States have around $25 daily, while the figure reaches $31 in Canada.
The figures highlight a significant difference in living standards between India and wealthier economies. The report estimates that the richest 10% in the United States have a daily income or consumption threshold of $173 per person. The corresponding figures stand at $129 in Canada, $128 in Germany and $129 in Australia. An earlier Economic Survey of India also indicated that people earning ₹80,000 per month fall within the country’s top 10% of earne
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Better Resource Use and Innovation Can Boost Growth
Economists believe India must address low income levels across the wider economy to achieve sustainable growth. Ahona Dutta Gupta, a Program Associate at the Foundation for Economic Development, highlighted this challenge, according to an NDTV report. Improving the living conditions of poorer households remains essential, but it cannot guarantee national prosperity on its own. Even if low-income families reach the earnings of today’s wealthier Indian households, their living standards may still fall behind those in developed countries. India therefore needs broader economic improvements that raise incomes across different sections of society.
India needs to use land, labour and capital more efficiently to increase productivity and create better-paying jobs. Businesses can expand and generate higher household incomes when they use resources effectively. The country must also encourage innovation by allowing entrepreneurs to test new ideas, learn from failures and grow successful businesses. Simplifying business registration and expansion can help companies operate more efficiently. A fair tax system and fewer bureaucratic hurdles can further support investment, productivity and long-term economic growth.
[…] Also read:India’s Richest 10% Earn Less Than the Poorest in Wealthy Countries […]