India’s per capita income set to rise by $2000 over 5 years:FM

Ira Singh
Khabar Khabaron Ki,05 Oct’24

Union Finance Minister Nirmala Sitharaman expressed strong confidence in India’s economic trajectory, forecasting a significant rise in per capita income over the next five years. Speaking at the third Kautilya Economic Conclave in New Delhi on Friday, Sitharaman projected that India’s per capita income would increase by an additional $2,000 in the coming half- decade. This comes as India builds upon its current per capita income of $2,730, which took 75 years to achieve, with the next leap expected to occur at a much faster pace. Sitharaman underscored the pivotal role of consumption in India’s economy, noting that it accounts for more than 60% of the country’s GDP. She highlighted India’s youthful population—43% of which is under 24 years old—as a key driver of organic consumption growth. “Our young demographic is a unique asset that will power India’s economic expansion for years to come,” Sitharaman remarked.
The finance minister also praised India’s financial system, asserting that it now competes on par with global markets. She emphasized the importance of nurturing the younger generation—mentally and physically—to ensure they are prepared to contribute to India’s economic future. Drawing a comparison with China, she pointed out that China’s growth benefitted from a favorable global trade and investment environment, positioning India to capitalize on similar opportunities.

In her address, Sitharaman also highlighted India’s exceptional economic performance on the global stage. “We are faring much better than many other nations, even those considered advanced,” she stated. “While many economies are struggling to grow, India is distinguishing itself as the fastest-growing economy in recent years, including this year and for the foreseeable future.”
India’s economy expanded by 8.2% in FY2023-24, positioning the country as a global growth leader. The Economic Survey 2023-24, presented in Parliament in July, forecasts India’s GDP growth between 6.5% and 7% for the current fiscal year, underscoring the resilience and momentum of the Indian economy.

The third Kautilya Economic Conclave with the theme ‘The Indian Era’, from 4th-6th Oct. 2024 in New Delhi, organized by the Institute of Economic Growth and the Ministry of Finance, is set to bring together 150 Indian and international academicians and policy makers to discuss most important issues including international financial reform, green financing, geo-economic fragmentation, India’s middle-income trap, jobs and skilling, artificial intelligence, and policy resilience etc. confronting the Indian economy and economies of the global south.