By IE&M Research
The World Bank has dropped the use of developing nation tag for India in its reports and instead classifies it as a “lower-middle-income” economy in South Asia. In fact, the World Bank has now stopped grouping low and middle income countries together as ‘developing countries’. However, it has not changed the term ‘developing countries’ or ‘developing world’ in its general work, but when it comes to presenting specialized data, it will use more precise groupings of countries.
The reason behind this change is because there is often a big gap between the countries within the developing world grouping which make, for instance, Malaysia with a gross domestic product of $338.1 billion and Malawi at a merely $4.25 billion both developing countries. Now, as per the new classification Russia and Singapore are under high-income-Non-OECD and the US under high income-OECD, Brazil, South Africa and China under upper middle income, Pakistan and Sri Lanka fall under lower-middle-income, and Afghanistan, Bangladesh and Nepal are low-income economies.