The Finance Minister on Thursday said the Indian economy will cross the $1 trillion mark by the end of the next financial year. India will then join seven other countries whose GDP is more than a trillion dollars.
There is an interesting implication that comes with passing the trillion dollar mark. Our quick calculations show that average incomes will be around $880 by March 2008, implying that India will no longer be a poor country. The World Bank defines a poor country as one with average incomes of less than $875.
India will have stepped into the next club—lower- middle income countries that have average incomes of between $876 and $3,465. From there till $10,725 are the upper-middle-income countries—and India is many decades away from getting there. With promotion will come extra burdens—from a lack of access to dirt cheap multilateral loans to fewer breaks from global trade rules. But these are minor nuisances in the march out of poverty.