India’s per capita income to grow by 70%

The country’s per capita income is expected to experience significant growth of nearly 70% by fiscal 2030, reaching US$ 4,000 from its current level of US$ 2,450 in fiscal 2023. 

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The country’s per capita income is likely to grow, with an estimated growth of nearly 70% by fiscal 2030, reaching US$ 4,000 compared to the present US$ 2,450 recorded in fiscal 2023. This growth trajectory is expected to transform the nation into a middle-income economy, boasting a considerable GDP of US$ 6 trillion. Remarkably, the report highlights that a significant portion of this GDP, more than half, will be driven by household consumption.

There has been a steady increase in the country’s per capita income and GDP. In fiscal 2001, the per capita income stood at US$ 460, which grew to US$ 1,413 in fiscal 2011, and further increased to US$ 2,150 in fiscal 2021.

The primary catalyst for substantial growth will be external trade. It foresees external trade almost doubling to US$ 2.1 trillion by 2030 from its current value of US$ 1.2 trillion in fiscal 2023. This projection is based on the assumption of a 10% annual growth in nominal GDP from now on. The current GDP is recorded at US$ 3.5 trillion, supporting the expected surge in external trade.

Household consumption is expected to be the second significant driver of growth, with projections showing a substantial increase to US$ 3.4 trillion by fiscal 2030. This amount would be equivalent to the current size of the GDP. In fiscal 2023, household consumption is anticipated to be US$ 2.1 trillion. Presently, household consumption accounts for as much as 57% of the GDP.