Beyond Per Capita Income: Reevaluating India’s Classification as a Developing Country

Pose or Myth: India as a Developing Country

For decades, the question has been posed regarding India's status as a developing nation. While per capita income remains a primary criterion, it is not the sole determinant. Beyond mere economic indicators, various factors such as purchasing power parity, crime rates, and education and healthcare affordability play a significant role in evaluating a country's developmental status.

What Constitutes a Developing Country?

The traditional classification of countries into developed and developing categories evolved after World War II and primarily relied on per capita income. Today, this criterion requires reevaluation. The multifaceted nature of development necessitates a broader perspective.

Modern definitions of development should consider factors such as:

Purchasing power parity (PPP) Crime rates Effectiveness of law enforcement Affordability of food, housing, higher education, and medical care Employment opportunities

India’s Economic Reality

India, often seen as a developing country, has a per capita income of approximately 2388 USD as of 2024, ranking 120th among 179 countries. Despite this lower per capita income, India cannot be classified as poor. Historically, India's GDP per capita has been on the rise, indicating some level of economic progress.

The Income Distribution Challenge

The income distribution in India presents a stark contrast. According to recent estimates, 80 crore people, or about 55% of India's population, live in poverty. These individuals rely heavily on government aid to meet their basic needs. In contrast, a much smaller segment of the population (2.2%) pays income taxes, while other developed countries like the US, UK, Germany, and France have much higher tax payers.

Crime Rates and Law Enforcement

The effectiveness of law enforcement and crime rates also contribute significantly to a country's development status. In India, these metrics are often poor, indicating a need for improvement in the justice and law enforcement systems.

Healthcare and Education Affordability

Affordability in healthcare and higher education is also a crucial factor. Indisputably, access to affordable healthcare and education is essential for a country's sustainable development. While basic education is largely available, accessing higher education and specialized medical care remains costly for many.

Housing Affordability and Economic Outlook

Housing affordability is another critical area where India falls short. High real estate prices and limited housing availability make it difficult for many to find affordable housing, exacerbating economic disparities.

The Case of Developed Countries

Even countries traditionally considered developed, such as the US, often have issues in areas like housing, education, and healthcare affordability. The US, for instance, struggles with high housing costs, despite having a higher per capita income. Similarly, countries like Singapore have made remarkable progress in development despite lower per capita income, due to higher levels of social welfare and efficiency.

Population Control and Economic Development

India's population control measures have been a topic of significant debate. High population growth rates can exert tremendous strain on the economy and resources. The government, fearing a loss of their vote bank, often opts for less stringent population control policies, leading to continued economic stagnation and poverty.

Given these complexities, the classification of India as a developing country should be revisited with a holistic approach to development.

Conclusion

India's journey towards development is multifaceted and requires a balanced assessment. While per capita income remains a crucial indicator, other factors like purchasing power parity, crime rates, and socio-economic indicators play significant roles in the overall development narrative. A reevaluation of development criteria can help create a fair and accurate classification, guiding better policies and resource allocation.