World Bank income classifications of India and Philippines spark debate

The World Bank continues to list India as a lower‑middle‑income economy, a classification it has kept since 2009 despite the country’s rank as the world’s sixth‑largest economy. The Bank bases the status on gross national income per‑capita, which has not risen above the $4,515 threshold. Analysts note that low‑paid contractual work, a labour‑force participation rate of about 56.4 % and suppressed wages hinder India’s move to high‑income status.

In contrast, the World Bank recently upgraded the Philippines to upper‑middle‑income. Think‑tank IBON Foundation warned that the statistical upgrade masks deep structural problems, citing that roughly 78 % of Filipino workers—about 38.7 million people—remain in informal or precarious employment. The foundation argues the reclassification does not reflect everyday hardships, despite the government’s positive spin ahead of President Ferdinand Marcos Jr.’s State of the Nation Address.