Earning ₹80,000 a month in India could place an individual among the country’s top 10% of earners. A comparison using the World Bank’s 2026 Poverty and Inequality Platform, however, highlights the wide gap between living standards in India and several advanced economies.
The daily income or consumption threshold for the poorest 10% in India is around $3 per person, according to the comparison. In contrast, the figure stands at approximately $25 in the United States and $31 in Canada. Germany and Australia record thresholds of around $28 each.
The gap is also visible at the top end of the distribution. India’s richest 10% have a daily income or consumption threshold of about $10 per person. The corresponding figures are around $173 in the United States, $129 in Canada and Australia, and $128 in Germany.
The Economic Survey of India also indicates that a monthly income of ₹80,000 can place an individual among the country’s top 10% of earners. Together, these figures highlight how the living standards associated with higher earnings in India can remain well below those in wealthier economies.
India needs to raise incomes across the economy
Ahona Duttagupta, programme associate at the Foundation for Economic Development, told NDTV that India’s challenge extends beyond reducing poverty. The broader concern, she said, is that incomes remain low across much of the economy.
A daily amount of $10 can place someone among India’s top 10% by income or consumption, while the same amount may put a person among the bottom 10% in countries such as Canada, Japan and the United States.
Duttagupta argued that improving conditions for low-income households is important, but it will not be sufficient to make India a prosperous country. Even if poorer Indians reach the living standards of today’s better-off households, their incomes could still remain far below those in advanced economies.
This means India needs to increase incomes and productivity across the population, rather than concentrating only on reducing the gap between rich and poor.
Why productivity matters
Higher productivity enables workers and businesses to produce more with the same amount of labour, land and capital. Over time, this can lead to higher wages, better-paying jobs and improved household incomes.
Duttagupta said productivity growth depends partly on innovation and the ability of businesses to experiment with new ideas. Since not every idea succeeds, entrepreneurs need an environment where they can test new approaches, manage genuine failures and expand businesses that perform well.
This requires making it easier to establish and grow businesses, maintaining predictable tax policies and reducing unnecessary compliance requirements.