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World Bank upgrades Sri Lanka, Vietnam to upper middle income status; where does India stand?
Edited By Ajaypal ChoudharyPublished: Jul 03, 2026, 06:46 IST
The World Bank has upgraded Sri Lanka, Vietnam and the Philippines to the upper middle income category in its latest country income classification, recognising their economic progress after years of growth and recovery.
Sri Lanka, which returned to the upper-middle-income group after slipping back following its economic crisis, was described by the World Bank as "a story of recovery." It said, "Just three years after a severe economic crisis brought the country to the brink of collapse in 2022, real GDP grew by 5% in 2025, driven by a rebound across industries and growth in financial and tourism services."
"The reclassification is a marker of resilience, though the country only narrowly crossed the threshold," it added.
Sri Lanka had first entered the upper-middle-income category in 2019 before falling back to lower-middle-income status as economic growth slowed and income levels weakened amid mounting domestic and external pressures.
Vietnam and the Philippines were also elevated to the upper-middle-income category after years of strong economic expansion, a move that could boost investor confidence in both countries. Vietnam had been classified as a lower-middle-income country since 2009, while the Philippines had remained in that category since the late 1980s.
According to the World Bank's latest classification, all five major Southeast Asian economies, including Singapore, Malaysia and Thailand, are now ranked as upper middle income or above.
Where does India stand?
India continues to remain in the lower-middle-income category, where it has been since 2007.The World Bank estimates India's Gross National Income, or GNI, per capita at around $2,500 to $2,700, well below the upper middle income threshold of $4,496.
Countries with a GNI per capita between $1,136 and $4,495 are classified as lower-middle-income economies, while those with incomes between $4,496 and $13,935 fall into the upper-middle-income category.
How does the World Bank classify countries?
The World Bank classifies economies into four income groups: high income, upper middle income, lower middle income and low income.The rankings are based on Gross National Income, or GNI, per capita estimates from the previous calendar year. This year's assessment covered 218 countries and will remain the global reference until the end of June 2027.
GNI measures the total income earned by a country's residents and businesses regardless of where that income is generated, unlike Gross Domestic Product, or GDP, which measures the value of goods and services produced within a country's borders.
