Why was Indian removed from the ‘developing countries’ list?

  • The U.S. said that it removed those countries that have a per capita Gross National Income of above $12,375 as per the World Bank data; those that account for more than 0.5% of the global trade share; and those that are members of either Economic, Cooperation and Development (OECD), the European Union (EU), or the Group of Twenty (G20).
  • India was removed from the list on account of it being a G-20 member and having a share of 0.5% or more of world trade. India’s share in global exports was 1.67% in 2018. In global imports, it was 2.57%.
  • However, India’s per capita GNI is below $12,375. Despite this, the U.S. has reclassified India as a ‘developed country’.
  • Further, the U.S. administration under President Trump has repeatedly accused fast-growing countries such as India and China of wrongly claiming trade benefits that are reserved for the truly developing countries.


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