INDIA’S PER CAPITA INCOME (Syllabus: GS Paper 3 - Economy

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Context: India’s per capita income is expected to increase 1. 6 times to $4,000, or about ?3. 2 lakh, by 2030, turning the country into an upper-middle income country, Standard Chartered economists said in a report.

  • Telangana, Delhi, Karnataka, Haryana, Gujarat and Andhra Pradesh, which together account for 20% of India’s GDP, to have per capita GDP over $6,000.
  • Uttar Pradesh and Bihar’s per capita income would have doubled to $2,000 by 2030.
  • While the report highlighted reforms, macro and political stability and healthy corporate balance sheets as drivers of sustained growth, it also noted that the government capex boost had paved the way for pick up in private investment.

Per capita income (PCI)

  • Per capita income (PCI) or total income measures the average income earned per person in a given area (city, region, country, etc.) in a specified year. It is calculated by dividing the area's total income by its total population.
  • PCI compares and assesses the economic situations of countries with varying population sizes.
  • The measurement of a country's per capita income is done by dividing the total national income of a particular country or state by the population in that specific geographical region.
  • When calculating a country's PCI, every individual is taken into account. The calculation includes men, women, children, and babies. 
  • This is mainly because the measurement considers the entire country's population or specific geographical location.
  • All India annual per capita Net National Income (NNI) for 2014-15 and 2022-23 at current prices are Rs. 86,647 and Rs. 1,72,000 respectively illustrate achievement in this regard.


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