The United States leads G7 nations in per capita income at $94,430, followed by Germany and the UK. India stands at $2,813—about 4 per cent of the G7 average and well below the global average of $15,680. Look at the ranking of the G7 nations with their per capita income.

What is the per capita income of G7 nations and where does India stand?

A research report projects that India’s average income is to rise by 70 per cent to $4,000 by fiscal year 2030 from $2,450 in fiscal year 2023. This will make India a middle-income economy with a $6 trillion gross domestic product (GDP) with about half coming from household consumption.

The per capita income/GDP has increased from $460 in fiscal year 2001 to $1,413 in fiscal year 2011 and then to $2,150 in fiscal year 2021.

According to a weekend report by Standard Chartered Bank, the nominal GDP is forecast to grow by 10 per cent annually. The main growth driver is external trade, which may double to $2.1 trillion by 2030 from $1.2 trillion in fiscal year 2023.

Household consumption is said to be the second-biggest growth driver, according to the report. By fiscal year 2030, consumption is expected to jump from the present $2.1 trillion to $3.4 trillion, which is as big as the GDP for fiscal year 2023.

In a statement made last week, Prime Minister Narendra Modi said that he would ensure that India's economy is brought to $5 trillion during his next term in office, making it the third-largest behind the US and China. Japan is now ranked third, while Germany is fourth.

The report predicts that nine states, rather than just one, will eventually reach the upper middle-income country category with a per capita income of $4,000 or more. Telangana currently holds the top spot in the league table for per capita income, with Rs 2,75,443 ($3,360) in FY23. Karnataka is next with Rs 2,65,623, Tamil Nadu with Rs 2,41,131, Kerala with Rs 2,30,601, and Andhra Pradesh with Rs 2,07,771.

Telangana, Delhi, Karnataka, Haryana, Gujarat, and Andhra Pradesh together make up 20 per cent of the country’s GDP now, and by fiscal 2030, each of these states will have a per-capita GDP of $6,000 or more.

However, big states like UP and Bihar, which together account for 25 per cent of the population, will still have per capita income below $2,000 in fiscal year 2030.

The consumer market will still be the same size as the economy today even if household consumption expenditures fall by 1% from their current proportion of GDP, which accounts for 57 per cent of the GDP.

The large percentage of people who are of working age will continue to be primary growth enablers. In 2020, 64.2 per cent of the population in the country was of working age. This percentage will increase to 64.8 per cent, but it could also slightly decline to 63.6 percent in 2040 and 61.1 percent in 2050.

As a result, the economy will gain from increased capital investment, labour productivity, and the population growth of those who are working age. However, a continually declining employment rate is a barrier to the expansion of real GDP per capita.

Other growth accelerators mentioned in the paper include macro stability, a sound financial system, corporate sector deleveraging, and public capex initiatives.

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A research report projects that India’s average income is to rise by 70 per cent to $4,000 by fiscal year 2030 from $2,450 in fiscal year 2023. This will make India a middle-income economy with a $6 trillion gross domestic product (GDP) with about half coming from household consumption.

A research report projects that India’s average income is to rise by 70 per cent to $4,000 by fiscal year 2030 from $2,450 in fiscal year 2023. This will make India a middle-income economy with a $6 trillion gross domestic product (GDP) with about half coming from household consumption. The per capita income/GDP has increased from $460 in fiscal year 2001 to $1,413 in fiscal year 2011 and then to $2,150 in fiscal year 2021. According to a weekend report by Standard Chartered Bank, the nominal GDP is forecast to grow by 10 per cent annually. The main growth driver is external trade, which may double to $2.1 trillion by 2030 from $1.2 trillion in fiscal year 2023. Household consumption is said to be the second-biggest growth driver, according to the report. By fiscal year 2030, consumption is expected to jump from the present $2.1 trillion to $3.4 trillion, which is as big as the GDP for fiscal year 2023. In a statement made last week, Prime Minister Narendra Modi said that he would ensure that India's economy is brought to $5 trillion during his next term in office, making it the third-largest behind the US and China. Japan is now ranked third, while Germany is fourth. The report predicts that nine states, rather than just one, will eventually reach the upper middle-income country category with a per capita income of $4,000 or more. Telangana currently holds the top spot in the league table for per capita income, with Rs 2,75,443 ($3,360) in FY23. Karnataka is next with Rs 2,65,623, Tamil Nadu with Rs 2,41,131, Kerala with Rs 2,30,601, and Andhra Pradesh with Rs 2,07,771. Telangana, Delhi, Karnataka, Haryana, Gujarat, and Andhra Pradesh together make up 20 per cent of the country’s GDP now, and by fiscal 2030, each of these states will have a per-capita GDP of $6,000 or more. However, big states like UP and Bihar, which together account for 25 per cent of the population, will still have per capita income below $2,000 in fiscal year 2030. The consumer market will still be the same size as the economy today even if household consumption expenditures fall by 1% from their current proportion of GDP, which accounts for 57 per cent of the GDP. The large percentage of people who are of working age will continue to be primary growth enablers. In 2020, 64.2 per cent of the population in the country was of working age. This percentage will increase to 64.8 per cent, but it could also slightly decline to 63.6 percent in 2040 and 61.1 percent in 2050. As a result, the economy will gain from increased capital investment, labour productivity, and the population growth of those who are working age. However, a continually declining employment rate is a barrier to the expansion of real GDP per capita. Other growth accelerators mentioned in the paper include macro stability, a sound financial system, corporate sector deleveraging, and public capex initiatives. WATCH WION LIVE HERE

India’s average income projected to increase by 70% to $4,000 by FY30: Report

When Bangladesh emerged as an independent country in 1971, it was arguably the poorest country in the world or close to it.

Today, the country is growing rapidly and ranks ahead of its big neighbour India.

Planning Minister of Bangladesh MA Mannan informed the country's cabinet that the per capita income of Bangladesh has now increased from $2,064 to $2,227.

Bangladesh's per capita income is now $280 higher than India’s per capita income which is $1,947.

“Our per capita income stands at $2,227 in the fiscal year 2020-21, but the previous fiscal year's per capita income was $2,064. So, the growth rate is 9%,” said Bangladesh's Cabinet Secretary Khandker Anwarul Islam while briefing reporters.

One of the most densely populated countries in the world, Bangladesh has been battling poverty and under-development for almost five decades. 
 
In 2007, the per capita income of Bangladesh was half of that of India.

Bangladesh will overtake India in per capita GDP once again in 2025 if IMF’s latest World Economic Outlook is to be believed.

The Bangladeshi government is understandably happy and proud of this accomplishment.

Once dubbed as a “bottomless basket” by former US secretary of state Henry Kissinger, Bangladesh is now among the most vibrant economies in the world with great prospects.

According to several analysts, at present, Dhaka ranks ahead of its neighbours in terms of development. The country displays a stable civilian government and has benefited from good relations with India, its big neighbour.

As post-COVID pick-up of the Indian economy is unlikely to be as smooth as that of Bangladesh. Bangladesh matches or bests India on many fiscal, economic and social indicators. Foreign aid is less than 2% of its GDP; it’s no longer Kissinger’s ‘basket case’.

(With inputs from agencies)

When Bangladesh emerged as an independent country in 1971, it was arguably the poorest country in the world or close to it. Today, the country is growing rapidly and ranks ahead of its big neighbour India.

When Bangladesh emerged as an independent country in 1971, it was arguably the poorest country in the world or close to it. Today, the country is growing rapidly and ranks ahead of its big neighbour India. Planning Minister of Bangladesh MA Mannan informed the country's cabinet that the per capita income of Bangladesh has now increased from $2,064 to $2,227. Bangladesh's per capita income is now $280 higher than India’s per capita income which is $1,947. “Our per capita income stands at $2,227 in the fiscal year 2020-21, but the previous fiscal year's per capita income was $2,064. So, the growth rate is 9%,” said Bangladesh's Cabinet Secretary Khandker Anwarul Islam while briefing reporters. One of the most densely populated countries in the world, Bangladesh has been battling poverty and under-development for almost five decades. In 2007, the per capita income of Bangladesh was half of that of India. Bangladesh will overtake India in per capita GDP once again in 2025 if IMF’s latest World Economic Outlook is to be believed. The Bangladeshi government is understandably happy and proud of this accomplishment. Once dubbed as a “bottomless basket” by former US secretary of state Henry Kissinger, Bangladesh is now among the most vibrant economies in the world with great prospects. According to several analysts, at present, Dhaka ranks ahead of its neighbours in terms of development. The country displays a stable civilian government and has benefited from good relations with India, its big neighbour. As post-COVID pick-up of the Indian economy is unlikely to be as smooth as that of Bangladesh. Bangladesh matches or bests India on many fiscal, economic and social indicators. Foreign aid is less than 2% of its GDP; it’s no longer Kissinger’s ‘basket case’. (With inputs from agencies)

Bangladesh outpaced India on per capita income

When Comrade Sitaram Yechury rails against GDP being a true measure of progress, he is not supporting the Modi government in its hour of need.

Quarterly GDP is presently at 4.5 per cent, and the fiscal is not expected to return much better than 5 per cent. This is a low-ebb measured by some new markers, as according to the old ones, the prognosis is much worse. But of course, the worm is already beginning to turn, in a cyclic sense. Green shoots of recovery are beginning to show, and the economy in 2020 is expected to do much better.

The reason why Comrade Yechury is not impressed by robust GDP growth, even if it was to return, is because our per capita income is about $2,000 per annum. This is approximately Rs. 140,000/- in round figures. But this is only a division of the income of the country by 1.3 billion people. It is askew. And it might be seen as rather good if one imagines the most destitute Indian making Rs. 11,666.66 per month. Of course, this is not true, because the rich own the universe, and the poor don’t have anything. A simple sum of division can’t change that.

At the same time, in recent years, since the mid-eighties, we have lifted over 400 million people out of abject poverty. Another 400 million of the population is, and has become, broadly middle class –more, as it happens, than the entire population of the US. Some 50 million of us are rather rich by any yardstick. The rest, unfortunately, are very, very, poor.

We add some 15 million people to our number every year, most of them are, ironically, children of the poor.

But, even if we power on at 8 to 10&nbsp;&nbsp;per cent of GDP per annum in the coming years, and take our economy, first to $ 5 trillion, and then to $ 10 trillion, at the present rate of population growth, our per capita will not rise very much at all.

This, even as most demographics show that we are producing more or less “replacement” quantities of babies now, except for some fecund pockets in certain states, and more properly, districts within them.

Most people in the middle class and above have many aspirations. They are not satisfied with just providing a full belly to their children. This has brought down the number of children people are having amongst this section, irrespective of caste and creed. But the per capita is another matter.

To understand this better, we must recall that our population in 1947 was at under 400 million. If we were still holding the line at that number, even with the vastly better life expectancy of these days, our per capita would have risen dramatically with the present size of the economy at some $2.8 trillion.

But, the thing is, could we have grown as much as we have since?

What would happen if we had a much higher per capita than we have at present? Remember, in 1958, when we first started reckoning it, it was just $70. We had a tiny economy, despite a much smaller population then, attended by miniscule growth.

For growth to compute, you need low wages, and reasonable efficiency to deliver high returns on investment. We are not much good at productivity per worker either. A high per capita, on a low-efficiency base, would make for a picky, entitled, but not very good workforce. Rather like the many in Europe or America, as opposed to those in China.

Combined with many Indian infrastructure bottlenecks and expensive land/ utility costs, we would not be competitive, even with generous government subsidies for the domestic market, let alone the export ones.

The growth in the Indian economy truly began around 1985, when the licence-permit raj started to be dismantled. These were multiple chokes and fetters that saw capitalism as something to be kept on a leash.

Initially, and even nearly 35 years on, we are still reaping the harvest of first stage economic reforms, with approaches to labour and land yet to be

revamped. A socialist, unionized, anti-technology labour force can’t expect much of a rise.

Most industrialists are afraid to expand, and certainly, don’t want permanent staff with onerous commitments and near unsackability.&nbsp;

And a contract universe is not, inherently, particularly well-trained. Developing their skills is expensive, and there is little stability in a contract worker’s outlook.

But still, The Indian economy, powered as it is by substantial domestic demand, in one of the biggest market places in the world, trundles on. Others in the developed world with small populations and high per capita income, see even our 5 per cent growth rate as enviable.

We can, and will, become the 3rd biggest economy in the world in due course depending on how fast we grow. But, the growth here, as in China, is because we have a large population and immense amounts of people joining the labour force at the bottom. This, even as huge numbers move on up to the middle class.

It is true that GDP is not everything, but neither is per capita. The Victorian Industrial Revolution could have never happened without an ill-paid labour force with next to no benefits. In colonial times, it was the use of slaves and indentured labour than fuelled the success of many enterprises. It wasn’t fair or equitable. It was capitalism.

(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL) &nbsp;

When Comrade Sitaram Yechury rails against GDP being a true measure of progress, he is not supporting the Modi government in its hour of need. Quarterly GDP is presently at 4.

When Comrade Sitaram Yechury rails against GDP being a true measure of progress, he is not supporting the Modi government in its hour of need. Quarterly GDP is presently at 4.5 per cent, and the fiscal is not expected to return much better than 5 per cent. This is a low-ebb measured by some new markers, as according to the old ones, the prognosis is much worse. But of course, the worm is already beginning to turn, in a cyclic sense. Green shoots of recovery are beginning to show, and the economy in 2020 is expected to do much better. The reason why Comrade Yechury is not impressed by robust GDP growth, even if it was to return, is because our per capita income is about $2,000 per annum. This is approximately Rs. 140,000/- in round figures. But this is only a division of the income of the country by 1.3 billion people. It is askew. And it might be seen as rather good if one imagines the most destitute Indian making Rs. 11,666.66 per month. Of course, this is not true, because the rich own the universe, and the poor don’t have anything. A simple sum of division can’t change that. At the same time, in recent years, since the mid-eighties, we have lifted over 400 million people out of abject poverty. Another 400 million of the population is, and has become, broadly middle class –more, as it happens, than the entire population of the US. Some 50 million of us are rather rich by any yardstick. The rest, unfortunately, are very, very, poor. We add some 15 million people to our number every year, most of them are, ironically, children of the poor. But, even if we power on at 8 to 10 per cent of GDP per annum in the coming years, and take our economy, first to $ 5 trillion, and then to $ 10 trillion, at the present rate of population growth, our per capita will not rise very much at all. This, even as most demographics show that we are producing more or less “replacement” quantities of babies now, except for some fecund pockets in certain states, and more properly, districts within them. Most people in the middle class and above have many aspirations. They are not satisfied with just providing a full belly to their children. This has brought down the number of children people are having amongst this section, irrespective of caste and creed. But the per capita is another matter. To understand this better, we must recall that our population in 1947 was at under 400 million. If we were still holding the line at that number, even with the vastly better life expectancy of these days, our per capita would have risen dramatically with the present size of the economy at some $2.8 trillion. But, the thing is, could we have grown as much as we have since? What would happen if we had a much higher per capita than we have at present? Remember, in 1958, when we first started reckoning it, it was just $70. We had a tiny economy, despite a much smaller population then, attended by miniscule growth. For growth to compute, you need low wages, and reasonable efficiency to deliver high returns on investment. We are not much good at productivity per worker either. A high per capita, on a low-efficiency base, would make for a picky, entitled, but not very good workforce. Rather like the many in Europe or America, as opposed to those in China. Combined with many Indian infrastructure bottlenecks and expensive land/ utility costs, we would not be competitive, even with generous government subsidies for the domestic market, let alone the export ones. The growth in the Indian economy truly began around 1985, when the licence-permit raj started to be dismantled. These were multiple chokes and fetters that saw capitalism as something to be kept on a leash. Initially, and even nearly 35 years on, we are still reaping the harvest of first stage economic reforms, with approaches to labour and land yet to be revamped. A socialist, unionized, anti-technology labour force can’t expect much of a rise. Most industrialists are afraid to expand, and certainly, don’t want permanent staff with onerous commitments and near unsackability. And a contract universe is not, inherently, particularly well-trained. Developing their skills is expensive, and there is little stability in a contract worker’s outlook. But still, The Indian economy, powered as it is by substantial domestic demand, in one of the biggest market places in the world, trundles on. Others in the developed world with small populations and high per capita income, see even our 5 per cent growth rate as enviable. We can, and will, become the 3rd biggest economy in the world in due course depending on how fast we grow. But, the growth here, as in China, is because we have a large population and immense amounts of people joining the labour force at the bottom. This, even as huge numbers move on up to the middle class. It is true that GDP is not everything, but neither is per capita. The Victorian Industrial Revolution could have never happened without an ill-paid labour force with next to no benefits. In colonial times, it was the use of slaves and indentured labour than fuelled the success of many enterprises. It wasn’t fair or equitable. It was capitalism. (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

Capitalism only works on low per capita income

Is A Global Economic Growth Slowdown Imminent?

Gravitas: Economic slowdown: The Global picture

India&rsquo;s economy needs to grow 8% and higher a year for the next three decades to join the ranks of middle-income countries, which would require major reforms in the land, labour and financial sectors, the World Bank said on Wednesday.&nbsp;

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If that did happen, it would raise the income of at least 50% of India&rsquo;s 1.3 billion people to sustain consumption expenditure of $10 a day based on the purchasing power parity of the global middle class.

The government estimates India&rsquo;s per capita income could touch 86,689 rupees ($1,337.4), or $3.7 a day, in the current fiscal year ending this month.

Asia&rsquo;s third-largest economy, which grew at a rapid pace of 8.8 percent a year from 2004 to 2008, is expected to grow 6.7 percent this financial year, said Junaid Ahmad, country director of the World Bank while releasing a report.

He said the bank planned to lend $20 billion to $25 billion to India in the next five years, mainly for investment in infrastructure, human resources and natural resources management, to support inclusive economic growth.

&ldquo;India&rsquo;s long-term growth has become steady, stable, diversified and resilient,&rdquo; Ahmad said adding it now needed to undertake reforms for efficient use of scarce land, water and financial resources to achieve higher growth.

The world&rsquo;s seventh-largest economy needs to accelerate growth to create jobs for a million young people joining the labour force every month.

Prime Minister Narendra Modi, who faces a general election next year, has pushed up spending on rural infrastructure and jobs-creating sectors to bolster his popularity.

Last November, India jumped into 100th place on the World Bank&rsquo;s ranking of countries by Ease of Doing Business, for the first time, up about 30 places, driven by reforms in access to credit, power supplies and protection of minority investors.

The World Bank projected the $2.5 trillion economy could grow at 7.3 percent and 7.5% in the next two years, helped by tax reforms and benign global growth.&nbsp;

India needs to push land, labour and financial sector reforms and improve the competitiveness of exports to achieve higher growth, Poonam Gupta, lead author of the World Bank report said.

Referring to the slowdown in bank credit following a surge in bad loans in banks, estimated at nearly $150 billion, the World Bank suggested consolidation of state banks and more space for private banks.

&ldquo;Durable revival in private investments and growth would be crucial for India,&rdquo; Gupta said.

&ldquo;The hard-earned fiscal discipline must be protected.&rdquo;

The government estimates India’s per capita income could touch Rs 86,689 ($1,337.4), or $3.7 a day, in the current fiscal year ending this month

India’s economy needs to grow 8% and higher a year for the next three decades to join the ranks of middle-income countries, which would require major reforms in the land, labour and financial sectors, the World Bank said on Wednesday. × If that did happen, it would raise the income of at least 50% of India’s 1.3 billion people to sustain consumption expenditure of $10 a day based on the purchasing power parity of the global middle class. The government estimates India’s per capita income could touch 86,689 rupees ($1,337.4), or $3.7 a day, in the current fiscal year ending this month. Asia’s third-largest economy, which grew at a rapid pace of 8.8 percent a year from 2004 to 2008, is expected to grow 6.7 percent this financial year, said Junaid Ahmad, country director of the World Bank while releasing a report. He said the bank planned to lend $20 billion to $25 billion to India in the next five years, mainly for investment in infrastructure, human resources and natural resources management, to support inclusive economic growth. “India’s long-term growth has become steady, stable, diversified and resilient,” Ahmad said adding it now needed to undertake reforms for efficient use of scarce land, water and financial resources to achieve higher growth. The world’s seventh-largest economy needs to accelerate growth to create jobs for a million young people joining the labour force every month. Prime Minister Narendra Modi, who faces a general election next year, has pushed up spending on rural infrastructure and jobs-creating sectors to bolster his popularity. Last November, India jumped into 100th place on the World Bank’s ranking of countries by Ease of Doing Business, for the first time, up about 30 places, driven by reforms in access to credit, power supplies and protection of minority investors. The World Bank projected the $2.5 trillion economy could grow at 7.3 percent and 7.5% in the next two years, helped by tax reforms and benign global growth. India needs to push land, labour and financial sector reforms and improve the competitiveness of exports to achieve higher growth, Poonam Gupta, lead author of the World Bank report said. Referring to the slowdown in bank credit following a surge in bad loans in banks, estimated at nearly $150 billion, the World Bank suggested consolidation of state banks and more space for private banks. “Durable revival in private investments and growth would be crucial for India,” Gupta said. “The hard-earned fiscal discipline must be protected.”

India needs 8% growth for 30 years to join middle-income countries: World Bank