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Nations with highest per capita income

India

July 24, 2008

India's per capita income is almost Rs 40,000 ($950) per year, according to the latest figures releasedby the World Bank.

This has been calculated using the World Bank Atlas method that employs official exchange rates for

conversion.

India's per capita income has more than doubled from $460 in 2000-01 to $950 in 2007 due to strong

economic growth.

Finance Minister P Chidambaram had recently stated that India's per capita income could double

every 9 years. By 2016-17, the country's per capita would be at $2,000; and by 2025, per capita

would be $4,000 if India grows at 9 per cent.

At $950 per capita income per year, India ranks a poor 160th in the world.

According to the World Bank categories: Nations with per capita income (PCI) less than $935 are 'low

income;' nations with PCI from $936 to $3,705 are 'lower middle income;' those with PCI from $3,706

to $11,455 are 'upper middle income;' and those with PCI from $11,456 or more are 'high income.'

So which are the world's richest nations, or people, in terms of per capita income? And where do

India's neighbours like China and Pakistan stand? Read on to find out. . .

Image: An Indian Bengal Tiger, Aparna, cools off in a water pool at Nehru Zoological Park inHyderabad. | Photograph: Noah Seelam/AFP/Getty Images

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1.Liechtenstein

Strange, as it might seem, the World Bank ranks nations, sometimes without giving their actual percapita income. No explanation is given by the World Bank, other than a footnote that says: ?2007

data not available; ranking is approximate.'

However, information gleaned from other sources bears out the World Bank ranking.

So the nation with the highest per capita income in the world is Liechtenstein, a small countrybordering Switzerland and Austria. Liechtenstein's per capita income is about $80,000 per annum.

The principality has an industrialised economy, with banking and financial services being themainstay. Tourism too is a major revenue earner for the nation.

The personal income tax rates in Liechtenstein too are exceedingly low: basic income tax rate is 1.2

per cent on income up to 200,000 Swiss Francs, and maximum is 5 per cent on income over 2 millionSwiss Francs a year.

Image: A sign at the border of the Principality of Liechtenstein with Switzerland. | Photograph:Fabrice Coffrini/AFP/Getty Images

2. Bermuda

Bermuda is tourist's delight, located in the North Atlantic Ocean.

Bermuda's per capita income is almost 50 per cent more than that of the United States. The tinyisland nation's per capita income stands at just above $78,000. It has the second highest PCI in theworld.

Bermuda is a major financial centre and is particularly attractive because of its low taxation rates.Financial services is the nation's largest industry, followed by tourism.

Image: Bermuda's delegation at the opening ceremony of the 2002 Winter Olympics in SaltLake City, Utah, US. | Photograph: Roberto Schmidt/AFP/Getty Images

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3.Norway

Norway's per capita income stands at $76,450, which is the third highest in the world.

Norway has a mixed economy consisting of state-owned businesses and a robust free market. It's a

high developed and industrialized state. Fishing, petroleum, hydel power, minerals contribute heavily

to the nation's GDP.

Image: The world's northernmost church stands overlooking the town of Longyearbyen during

midsummer on June 21, 2008 in Longyearbyen, Norway. | Photograph: Chris Jackson/Getty

4.Luxembourg

Luxembourg's per capita income is at $75,880. That makes it the world's fourth highest PCI.

Luxembourg is located in Europe and is bordered by Belgium, France, and Germany.

The nation has highly developed industrial and financial sectors.

Image: The flags of Luxembourg (L) and the European Union fly behind the Grand DucalPalace in Luxembourg. | Photograph: Jean-Christophe Verhaegen/AFP/Getty Images

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5.Qatar

The per capita income of Qataris is $60,000, the fifth highest in the world.

Qatar is an Arab emirate located in the Persian Gulf.

The nation's economy mainly depends on its huge oil and natural gas reserves. There is no income

tax in Qatar.

Image: Qatari men walk past a statue of Orry (R), the mascot for the 15th Asian Games, at a

shopping mall in Doha. | Photograph: Karim Jaafar/AFP/Getty Images

6.Switzerland

The Swiss enjoy a financially comfortable life, with a per capita income of$59,880. Switzerland ranks

sixth in the World Bank's per capita income rankings.

Switzerland, a truly capitalist economy, has many giant banks and multinational corporations. It also

has highly developed industries in sectors like pharmaceuticals, chemicals, machine parts,

electronics, precision instruments, banking, tourism, etc. Dairy farming too is an age old industry in

Switzerland. It has very low tax rates.

Image: An Alpine horn player performing for a Swiss cheese company, Emmi. | Photograph:

Timothy A. Clary/AFP/Getty Images

7.Denmark

Denmark's per capita income is at $54,910. According to World Bank rankings, it is the world's

seventh highest PCI.

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Denmark has a highly industrialised economy, with robust agricultural and corporate sectors. Despite

being one of the most competitive nations, the nation has a very weak financial regulatory system.

Also, its labour laws are very lax and tilted heavily in favour of the employers.

Image: The Little Mermaid, the world famous tourist attraction in Copenhagen, Denmark. |

Photograph: Lars Rievers/AFP/Getty Images

8.Iceland

At $54,100, the per capita income of Iceland is the world's eighth highest.

Iceland has a very healthy power sector which helps it be a highly industrialised country. Apart from

manufacturing, the nation is also taking big strides in the fields of software generation, biotechnology,

tourism, and financial services.

Image: A statue of the Viking legend Leiv Eriksson (R) and the tower of the landmark Hallgrim

church are silhouetted in Reykjavik, the capital of Iceland. | Photograph: Odd

Andersen/AFP/Getty Images

9.Cayman Islands

The per capita income of Cayman Islands is more than $48,140 and less than $54,100, as per World

Bank figures. It has the 11th highest PCI in the world. At number 9 is Channel Islands and in the 10th

spot is Andorra.

The Cayman Islands are situated in the Caribbean Sea. It is a major financial centre and also one ofthe world's best known tax havens.

The nation's economic mainstays are tourism and financial services.

Image: George Town in Grand Cayman, Cayman Islands. | Photograph: David Rogers/Getty

Images

10.Ireland

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The Irish have a per capita income of$48,140, ranking them twelfth in the world.

Ireland too has made rapid strides in the field of information technology. Construction, apart from

agriculture, too is an important part of the Irish economy.

Image: The Oliver St. John Gogarty pub in Dublin, Ireland. | Photograph: John D

Mchugh/AFP/Getty Images