Last Updated:
The daily income or consumption threshold for the poorest 10% of Indians is around $3 per person, according to data.
An individual consuming $10 a day could be among the richest 10% in India, while the same level of consumption could place someone among the poorest 10% in countries such as Canada, Japan and the United States.
The poorest 10% of people in some of the world’s wealthiest economies have higher daily income or consumption levels than the richest 10% in India, highlighting the vast gap in living standards between India and advanced economies, according to the World Bank’s 2026 Poverty and Inequality Platform.
The data shows that the daily income or consumption threshold for the poorest 10% of Indians is around $3 per person. In comparison, the corresponding threshold stands at $25 in the United States, $31 in Canada, and $28 each in Germany and Australia.
The disparity is even more pronounced at the top of the income distribution. In India, the threshold for belonging to the richest 10% is around $10 per person per day. The figure rises to $173 in the United States, $129 in Canada and Australia, and $128 in Germany.
The comparison underscores the difference in income levels across countries, suggesting that even relatively affluent Indians may have substantially lower purchasing power and living standards than people at the bottom of the income distribution in several developed economies.
According to India’s Economic Survey, an individual earning Rs 80,000 a month ranks among the top 10% of earners in the country, further illustrating the relatively low income levels across much of the Indian economy.
According to an NDTV report, Ahona Duttagupta, program associate at the Foundation for Economic Development, said the comparison highlights a fundamental challenge for India: the problem is not limited to poverty or the gap between rich and poor, but also reflects low incomes across the economy.
An individual consuming $10 a day could be among the richest 10% in India, while the same level of consumption could place someone among the poorest 10% in countries such as Canada, Japan and the United States.
According to the report, Duttagupta’s argument is that improving the living standards of poorer Indians is essential, but reducing inequality alone will not make India a prosperous economy. Even if lower-income households improve their position and catch up with relatively affluent Indians, their living standards could remain well below those enjoyed by people in wealthier countries.
The challenge, therefore, is to raise incomes across the population rather than simply redistribute gains within the existing income distribution.
Higher productivity is central to achieving this goal. When workers and businesses produce more goods and services using the same amount of land, labour and capital, the economy can generate greater output and support higher wages, better-paying jobs and rising household incomes.
Productivity growth also enables businesses to expand operations, invest in new technologies and compete more effectively in domestic and international markets. Over time, these gains can translate into higher living standards across income groups.
Duttagupta argued that innovation and experimentation are critical to improving productivity, according to the report. Since entrepreneurs cannot know in advance which ideas or business models will succeed, they need an environment that allows them to test new approaches, recover from genuine failures and scale up successful ventures.
Quick Answers
Ask News18The daily income or consumption threshold for the poorest 10% of people in India is around $3 per person. In contrast, this threshold is significantly higher in advanced economies, standing at $25 in the United States, $31 in Canada, and $28 each in Germany and Australia.
Ask News18About the Author
A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, w…Read More
October 12, 2026, 11:53 IST
Read More
Source link
[ad_3]
