By the year 2030, India will join the upper middle income category countries. Per capita income will increase by more than 33 percent during the next four years. The report released by the State Bank of India on Monday said that India’s economy is growing rapidly, due to which India will overtake Germany to become the third largest economy in the world by the year 2028. The benefits of the improvement in the economy will also be visible on the per capita income.
What will be the per capita income in India?
The report says that per capita income in India will be Rs 2.72 lakh ($3000) in the year 2026, but with the growth of the economy, people’s income will also increase. In such a situation, when India becomes the third largest economy in the world, the per capita income will increase to more than Rs 3.62 lakh ($4000) in the year 2030.
One trillion dollar economy in 60 years after independence
After independence, India had traveled the journey of becoming a one trillion dollar economy in 60 years, but after that it became a country with 2 trillion dollars economy in just 7 years (by the year 2024), then three trillion dollars in seven years i.e. by the year 2021 and now in just 4 years (by the year 2025) it became a country with a 4 trillion dollar economy.
Towards becoming a 5 trillion dollar economy
It is now estimated that by 2027-28, India will become a 5 trillion dollar economy. The report says that if the pace of economic reforms continues, then India can become a high-income country by 2047, but for this the investment, industry and manufacturing sectors will have to be further strengthened. To join the high-income country, the per capita income in India will reach 13936 dollars (more than 12.63 lakh) because for this, India will have to achieve a compound annual growth rate (CAGR) of 7.5 percent in the per capita gross national income. Statistics show that because India’s per capita GDP has grown at a CAGR of 8.3 percent during the last 23 years (2001-2024). In this respect, this target can be easily achieved.
Some challenges in achieving the goal
The report says that India will face some challenges to join the category of high-income countries. Because by the year 2047, the current standard of per capita income in high income countries will increase from $ 13936. If the threshold for becoming a high income country increases to $18,000 in future, then India should have a CAGR of 8.9 percent for the next two decades i.e. 23 years.
Increase in per capita income in the past years and future prospects
$1110 in 2009
$2070 in 2019
$3108 in 2026 (estimate)
$4276 in 2030 (probability)
