According to world bank  countries whose per capita income is more than US$12616 is considered to de a  rich country.The country whose per capita income is less than US$1035 is called low income country. 

2006, the world development report to classify countries on the average income criterion.

The average of per capita income is the main criterion for comparing a developed economy with an under developed economy.

Countries with per capita income above Rs 4,53,000 per annum were considered to be high income countries and with Rs 37,000 or less were considered to be low income countries.

Classification of Countries Based on Per Capita Annual Income

The World Bank classifies countries into two groups based on their per capita annual income: low-income countries and high-income countries. This classification helps to analyze and compare the economic development and living standards of different nations. Let's delve into the details of each group.

Low-Income Countries:
Low-income countries are characterized by relatively low levels of per capita income. These countries often face significant challenges in terms of economic development, poverty eradication, and provision of basic services to their populations. Some key features of low-income countries include:

1. Economic Characteristics:
- Low GDP per capita: Low-income countries generally have a low Gross Domestic Product (GDP) per capita, indicating a small economic output per person.
- Limited industrialization: These countries often have underdeveloped industrial sectors and rely heavily on agriculture, mining, or other primary industries.
- High unemployment and underemployment rates: Low-income countries frequently struggle with high unemployment rates and a large informal sector where people work in unstable and low-paying jobs.
- Limited access to capital: Financial resources, including investment capital, are scarce, making it difficult for businesses to grow and innovate.

2. Social and Development Characteristics:
- Widespread poverty: Low-income countries have a significant portion of their population living in poverty, often lacking access to basic necessities such as food, clean water, and healthcare.
- Limited access to education and healthcare: Educational and healthcare facilities may be inadequate, leading to lower literacy rates, higher infant mortality, and shorter life expectancy.
- Unequal income distribution: Income inequality tends to be higher in low-income countries, with a small portion of the population controlling a large share of the wealth.

High-Income Countries:
High-income countries, on the other hand, exhibit higher levels of per capita income and economic development. These nations have generally achieved higher living standards and greater economic stability. Here are some key characteristics of high-income countries:

1. Economic Characteristics:
- High GDP per capita: High-income countries have a relatively high GDP per capita, indicating a larger economic output per person.
- Diversified and advanced industries: These countries have well-developed industrial sectors, including technology, finance, manufacturing, and services.
- Low unemployment rates: High-income countries often maintain low unemployment rates due to a higher demand for skilled labor and greater job opportunities.
- Access to capital: Financial resources are more readily available, enabling businesses to access investment capital for growth and innovation.

2. Social and Development Characteristics:
- Higher living standards: High-income countries have better infrastructure, higher-quality housing, and access to modern amenities.
- Comprehensive social welfare systems: These countries typically have well-established social safety nets, providing support for healthcare, education, unemployment benefits, and retirement pensions.
- Lower poverty rates: The proportion of the population living in poverty tends to be significantly lower in high-income countries.
- Higher literacy rates and healthcare access: Education and healthcare systems are more advanced, resulting in higher literacy rates, lower infant mortality, and longer life expectancy.

Conclusion:
The classification of countries into low-income and high-income groups based on per capita annual income provides a framework for understanding the economic disparities and development levels across nations. It highlights the challenges faced by