If you see some years back, India had been emerging as a fastest developing nation across the world. China, Brazil and South Africa see India as competitors for the next big economic power.
As per Business Insider report, The new classification by the World Bank puts countries in different categories, in which countries with gross national income (GNI) per capita of $1046 are placed at the bottom of the list. Those with GNI per capita $4,126 to $12,735 are categorised as lower middle income economies.
As per International Business Times report, India is ranked below Brazil, Russia, China and South Africa, leaving it the only BRICS nation which did not make it to the upper middle income category.
The logic given by the banks is that Malawi and Mexico which were both seen as developing nations, can no longer stay in the same list since Malawi has GNI of $250, whereas Mexico has GNI of $9860.
As The Economic Times reports says, Among other aspects, India lagged behind when it came to labour force participation rate, electricity generation and access to improved sanitation. Also, maternal deaths and under five mortality brought it down.
The time needs to start a business in India was also 29 days, as opposed to a global average of 20 days. But India is currently growing at a rate of more than seven percent, and is the fastest growing economy in a weak global economy.