Per capita income to rise by $2K over next five years: Sitharaman

India’s per capita income is projected to increase by 2,000 USD over the next five years, said Finance Minister Nirmala Sitharaman during her inaugural speech at Kautilya Economic Conclave in New Delhi. The finance minister said the upcoming decades would see the steepest rise in living standards for the common citizen driven by economic and structural reforms implemented over the past decade. Currently, the per capita income is at 2,730 USD.

Fuel for Viksit Bharat

India’s innovation ability will mature over the coming decades. The financial system is well capitalised to fuel the productive credit. Geopolitical re-positioning will help create robust supply chains with like-minded countries.

“While it took us 75 years to reach a per capita income of 2,730 USD, as per IMF(International Monetary Fund) projections, it will take only five years to add another 2,000 USD,” Sitharaman said.

“Ultimately, the largest stakeholders and beneficiaries of the growth process towards Viksit Bharat will be the four major groups, namely garib (poor), mahilayen (women), yuva (youth) and annadata (farmer). Accordingly, the budgets in Amrit Kaal will be devised with these stakeholders in mind,” Sitharaman added.

She said India’s creditable economic performance in the recent decade was underscored by its jump from being the tenth to the fifth largest economy in a matter of five years, sustained high growth rates and inflation well within the comfortable range.

“By 2047, the new Indian era will have core characteristics similar to developed countries,” she elaborated.

According to the Finance Minister, the youthful population would provide a large base for total factor productivity improvements, savings, and investment.