In 2016, the World Bank changed the way it classified economies to GNI per capita. This old news is being shared in a recent context with misleading claims. On the basis of the new classification, India has moved from the category of ‘developing’ countries to the category of lower middle income economy, but this does not indicate any kind of decline, nor does India’s falling into this category mean any decline in its economy. To be at par with other small countries included in the same category.
New Delhi (Vishvas News). Before the announcement of the dates of Lok Sabha elections 2024, an infographic is being shared on social media claiming that the World Bank has removed India from the category of “developing” countries and placed it in the “lower middle income” category. Which includes countries like Zambia, Ghana, Guatemala, Pakistan, Bangladesh and Sri Lanka. From this it appears that the status of the Indian economy has declined.
Vishvas News in its investigation found this claim to be misleading. The ranking mentioned in the viral post is not a recent incident, but an old incident of 2016, when the World Bank had changed the basis of classification of economies and instead of developed and developing countries, countries were ranked by their per capita income. Started to be classified on the basis of.
Being included in this new classification does not mean that the size of India’s economy has become smaller and its size and status has become equal to countries like Zambia or Ghana.
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In a keyword search based on the claim included in the viral post, we found several old reports in which it is mentioned. Economic Times published on 31 May 2016 News According to the World Bank, for decades decisions were taken by placing countries in the category of “developed” and “developing” countries, but now the World Bank has changed this classification by adopting a more accurate method.
According to the report, “India, which till now was in the category of developing countries, has now come in the category of “lower middle income” countries.”
many other old reports This is also mentioned in.
It is clearly mentioned in all the old reports that the World Bank has changed the basis of classification of economies and now countries will not be counted in the category of ‘developed’ and ‘developing’ countries.
In 2016, the World Bank changed its classification standards and decided to do so on GNI per capita basis instead of labeling countries as ‘developed’ and ‘developing’ countries. of the World Bank Website But this classification can be seen. According to the information available on the World Bank website, India still remains in this income category group.
Even before this, this claim had gone viral on social media during the pre-elections, which was investigated by Vishvas News. Our detailed fact check report can be read here.
To understand the basis of this classification, we contacted senior economist Arun Kumar. He told us, “In 2016, the World Bank decided to shift the classification of economies from ‘developing’ and ‘developed’ countries to GNI per capita in line with the emerging needs of the international financial system. This approach of the World Bank shows how they have to deal with countries.”
He said, “India has been placed in the category of lower middle income economy along with other small countries, but this does not mean that this is any kind of downgrade or that India is in a situation like Ghana, Zambia and Ghana. Has been. The size of India’s economy is much larger than these countries and the average income has been standardized in the new category, but there are inconsistencies in this method, because in India, the income of those who are richer than before is increasing and the income of those who are poor is increasing. Yes, they have become poorer than before, but if you take an overall average, you will see an increase in per capita income. “Average income does not reflect the distribution of income.”
Provided by the World Bank Information According to , “Low income economies include countries whose GNI per capita income in 2014 was $1,045 or less. Whereas in lower middle income economy, GNI per capita income has been kept at 1046-4,125 dollars, in upper middle income economy, GNI per capita income has been kept at 4,126-12,735 dollars. “High-income economies are those countries where GNI per capita is $12,736 or more.”
of the International Monetary Fund (IMF) statistics According to , the world’s five biggest economies in 2024 include America, China, Germany, Japan and India.
Fact check reports on other misleading and fake claims related to the economy can be found on the Business Check website of Vishvas News. Section Can be read in.
Conclusion: In 2016, the World Bank changed the way it classified economies to GNI per capita. This old news is being shared in a recent context with misleading claims. On the basis of the new classification, India has moved from the category of ‘developing’ countries to the category of lower middle income economy, but this does not indicate any kind of decline, nor does India’s falling into this category mean any decline in its economy. To be at par with other small countries included in the same category.
- Claim Review : World Bank removed India from the category of developing countries.
- Claimed By : Tipline User
- Fact Check : misleading
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2024-03-14 14:32:46