July 31, 2023
Per capita income is likely to reach US$ 4,000
Gross Domestic Product (GDP) reached US$ 3.5 trillion
The second biggest growth driver will be household consumption, which is seen jumping to US$ 3.4 trillion by 2030
Telangana leads in the per capita income league table with INR 275,443 or US$ 3,360 in FY23
India’s per capita income is likely to grow by nearly 70% to US$ 4,000 by 2030 from US$ 2,450 in fiscal 2023, helping it become a middle-income economy with US$ 6 trillion in GDP, according to a report from Standard Chartered Bank.
According to the report, the primary growth driver will be external trade, which may nearly double to US$ 2.1 trillion by 2030 from US$ 1.2 trillion in FY23, when the GDP reached US$ 3.5 trillion. The second biggest growth driver will be household consumption, which is seen jumping to US$ 3.4 trillion by 2030, as big as the current GDP size, from US$ 2.1 trillion in fiscal 2023. Household consumption is as much as 57% of GDP now.
Regarding States, the report sees as many as nine states growing to the upper middle-income country status with US$ 4,000 in per capita income, up from just one now, the report said, sans naming the state.
Currently, Telangana leads in the per capita income league table with INR 275,443 or US$ 3,360 in FY23, followed by Karnataka with (INR 265,623), Tamil Nadu (INR 241,131), Kerala (INR 230,601), and Andhra Pradesh with INR 207,771. Among these, Telangana, Delhi, Karnataka, Haryana, Gujarat, and Andhra account for 20% of the national GDP today and will have a per capita GDP of US$ 6,000 by fiscal 2030.
On the other hand, large states UP and Bihar, which comprises 25% of the population, will have per capita income below US$ 2,000 even in fiscal 2030, which is still two times their fiscal 2020 levels.
The report also names the consistent reform progress, macro stability, healthy financial sector, deleveraging of the corporate sector, and public capex push as other growth enablers.
Source: Economic Times