'Why is India still a developing nation despite being in top 5 economies?': Amitabh Kant explains

Avi Dandiya, the chief-in-charge of social media for Indian Overseas Congress, on Tuesday asked a pointed question to former NITI Aayog CEO Amitabh Kant on X. Dandiya questioned why India, despite being one of the top five economies in the world, is still classified as a developing nation rather than a developed one. 

"My question is simple and the question is why India is still not regarded as developed nation but developing nation inspite of being top five economies of the world. @amitabhk87," Dandiya asked.

In response, Amitabh Kant gave a technical explanation that sheds light on the criteria used to determine a country’s development status. Kant explained, "A developing country is technically a country where the Gross National Income per capita is $11,905 or less. Even China, Brazil & Malaysia are regarded as developing countries."

India saw impressive gains in GDP or Gross Domestic Product based on purchasing power parity, while countries like Germany, Japan, and the UK have been dropping in the rankings.

According to research by the Delhi-based nonprofit Social Policy Research Foundation (SPRF), as of 2024, the Indian economy, when measured at PPP, is 3.6 times larger than the UK's, 2.1 times larger than Japan's, and 2.5 times larger than Germany's.

According to Jefferies, India's GDP is expected to reach $5 trillion in the next four years and surpass Japan and Germany to become the third-largest economy by 2027. In a recent note, the investment banking company also predicted that India's market will grow to nearly $10 trillion by 2030, making it "impossible" for large global investors to overlook the country.