India’s per capita income to jump 70% by 2030 to reach $4,000: Report
Since 2001, the per capita GDP grew from $460 to $1,413 in 2011 to $2,150 in 2021.
The Indian per capita income is likely to grow 70% by 2030 to reach $4,000 from the current per capita income of $2,450, said a report by the Standard Chartered Bank. This growth in income will boost the economy of the country and will help the GDP to reach $6 trillion with half of it coming from household consumption. This will help us achieve the status of a middle-income economy.
The report highlights an anticipated upward trajectory in India’s per capita income and GDP over the years. From fiscal year of 2001 to fiscal year of 2021, the per capita income has increased significantly from $460 to $2,150. The per capita income currently in 2023 is expected to be around $2,450.
According to Standard Chartered Bank’s projections, the foremost driver of growth will be external trade, which is estimated to nearly double to $2.1 trillion by 2030. This is an increase from $1.2 trillion in fiscal year of 2023 when the GDP stood at $3.5 trillion. Assuming a consistent 10% annual growth in nominal GDP, the report anticipates an impressive surge in external trade.
The second major contributor to the growth of per capita income is household consumption which is to soar to $3.4 trillion by fiscal year 2030, equivalent to the current size of the entire GDP, which is higher than the $2.1 trillion in fiscal year 2023. Currently, household consumption constitutes a significant 57% of the country’s GDP.
Presently, Telangana leads the per capita income league table with Rs 2,75,443 in fiscal year 2023, followed closely by Karnataka 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. However, the report suggests that Gujarat is expected to take the lead in per capita income by fiscal year 2030, followed by Maharashtra, Tamil Nadu, Karnataka, Haryana, Telangana, and Andhra Pradesh.
Among these states, Telangana, Delhi, Karnataka, Haryana, Gujarat, and Andhra Pradesh collectively contribute 20 per cent to the national GDP and are projected to achieve a per capita GDP of $6,000 by 2030. However, states like Uttar Pradesh and Bihar which have 25% of the nation’s population will still have a per capita income below $2,000 even in fiscal year 2030 which will be twice the per capita income level in fiscal year 2020.
