The economy of India is a developing mixed economy with a notable public sector in strategic sectors. It is the world's fourth-largest economy by nominal GDP and the third-largest by purchasing power parity (PPP); on a per capita income basis, India ranked 136th by nominal GDP and 119th by PPP-adjusted GDP.
As of 2025, poverty in India declined sharply. According to the World Bank report, extreme poverty fall from 16.2% in 2011-12 to 2.3% in 2022-23. In rural areas it fell from 18.4% to 2.8%, and in urban areas, from 10.7% to 1.1%. 378 million people were lifted from poverty and 171 million from extreme poverty.
Global Multidimensional Poverty Index 2024
The five countries with the most people in poverty are India (234 million), Pakistan (93 million), Ethiopia (86 million), Nigeria (74 million), and the Democratic Republic of the Congo (66 million).
Some of the biggest social problems in India include poverty, pollution, illiteracy, corruption, gender inequality, and violence against women.
Bihar is consistently ranked as India's poorest state by metrics like the Multidimensional Poverty Index (MPI) and per capita income, with significant portions of its population in poverty, though figures vary by report and year, often followed by Jharkhand, Uttar Pradesh, and Madhya Pradesh. While these states lag in development, indicating a significant gap with wealthier states like Goa and Kerala, the BIMARU acronym highlights this historical trend, despite some recent growth.
Advisory summary
Violent crime and terrorism occur in India. Rape is one of the fastest growing crimes in India. Violent crimes, including sexual assault, happen at tourist sites and other locations. Terrorists may attack with little or no warning.
Even though average salaries can be lower than in Western countries, the lower cost of living often helps balance this out. Many people find they can enjoy a comfortable lifestyle and even save more despite earning less nominally.
Do not step over a person sitting or lying on the floor, as it is offensive. Never touch anything with your feet, and don't point the bottom of your feet at religious altars or toward people. To avoid this, sit cross-legged or kneel on the floor while in a temple or holy place.
The United States is the world's richest country by a wide margin. It's a global hub for finance, tech, energy, and entertainment. From Silicon Valley to Wall Street, American firms shape worldwide trends. The country benefits from vast natural resources, advanced infrastructure, and a culture of innovation.
In the aggregate socioeconomic index of development, Pakistan has the strongest position in the 3rd world. It is clear from the clustering results that Pakistan, in general, is more similar to the African developing countries than to the countries of her own region.
India has overtaken Japan as the world's fourth-largest economy – and officials hope to pass Germany within three years, the government's end-of-year economic review calculates. Official confirmation, however, depends on data due in 2026 when final annual GDP figures are released.
India's extreme poverty rate fell from 27.1% in 2012 to 5.3% in 2022, lifting 269 million out of poverty. In contrast, Pakistan's extreme poverty rose from 4.9% in 2017 to 16.5% in 2021, with worsening conditions. India's economy recently surpassed Japan, becoming the world's fourth-largest, reflecting growth progress.
India is known for its historical architectural treasures, including the Taj Mahal, Humayun's tomb, the Sun Temple at Konarak and other vast temple complexes. But modern India has also made its fair share of cultural contributions.
Overall, both countries have unique strengths and weaknesses that need to be considered by companies entering the market. When it comes to technically demanding tasks, China may turn out to be a better choice. However, when it comes to cost savings via lower-wage tiers, India may be the better option.
A good salary in India depends on the city. It ranges from INR 50,000 to 80,000/month in metros, INR 35,000 to 50,000 in Tier-2 cities, and INR 25,000 to 35,000 in smaller towns. Is INR 70,000 per month a good salary in India? Yes, INR 70,000/month is considered good, especially in Tier-2 and Tier-3 cities.
A complete list of world's 10 most dangerous countries for 2025. The United States ranked 89th on Numbeo's 2025 list of the world's safest countries, trailing India (66) and Pakistan (65).
In the small State category At the top: Goa ranked first, followed by Meghalaya and Himachal Pradesh. The worst performers with negative points: Manipur, Delhi and Uttarakhand. Union Territories Chandigarh emerged at the top in the category of Union Territories followed by Puducherry and Lakshadweep.
India moved from Level 2 back to Level 3 country for Subclass 500 on 8th January.
Top 10 Richest Cities In India
Here is a closer look at each state, its GDP contribution and per capita income standing in the economic ranking of Indian states.