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Volume 464: debated on Wednesday 10 October 2007

To ask the Secretary of State for International Development whether he classes India as a low-income country or a middle-income country; and if he will make a statement. (155727)

DFID currently classes India as a low-income country. This is in line with the Organisation for Economic Cooperation and Development (OECD) classification, recognised and used by the international donor community.

The OECD bases its classification on the World Bank’s World Development Indicators report. This currently states that India is a low-income economy because its Gross National Income (GNI) per capita was calculated as $730 in 2005, well under the $875 per capita or more that would mean graduation to middle-income country status.