The ‘middle-income trap’ is the phenomenon specific to the growing economies when they are stagnating at middle-income levels of per capita income (between $1045 to $12736) and failing to graduate into the ranks of high-income countries. Middle income countries are those with per capita income above $1045 whereas higher income economies are that are have above $12736. Most of the world economies are having middle income level of per capita income. Several countries are having the middle income per capita income for many decades.
India’s per capita income is $1613 as on 2015.
