India to be $5 tn economy by 2028

India is set to transition to 'upper-middle income' country in next four years in 2030, joining the ranks of China and Indonesia, and become the third largest economy even earlier in 2028, an SBI Research report said on Monday.

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The World Bank classifies nations as low income, lowermiddle income, upper-middle income and high-income countries based on their per capita GNI (Gross National Income) in US dollar.

In 1990, of the total 218 countries classified by the World Bank, 51 belonged to low income, 56 to lower-middle-income, 29 to upper-middle-income and 39 to high-income categories.

The latest data in 2024 shows only 26 countries as low income, 50 as lowermiddle income, 54 as uppermiddle income and 87 as high income. The transition clearly shows countries have moved up the income ladder over the years.

India took 60 years to transition to lower-middle income in 2007 from low-income country. Its per capita GNI increased from USD 90 in 1962 to USD 910 in 2007, an annual growth rate of 5.3 per cent, said the report.