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India becomes a $650 B economy
By agencies
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Friday, 01 July 2005, 19:30 IST
NEW DELHI: Strong manufacturing and services growth propelled IndiaÂ’s per capita income at current prices to $534 in 2004-05. With this India has become a $650 billion economy.
The impressive 10.7 percent growth in per capita income was achieved despite a meager 1.1 percent growth in output of the monsoon-hit farm sector, which is the source of income and livelihood for over 600 million of the countryÂ’s 1.08 billion population.
The revised estimates of national income, released by the Central Statistical Organization (CSO), thus had a possible explanation for the burgeoning consumer class in the country and the busy shopping centers.
The rise in jobs and income in the services sector has created a large consumer base among the youth, willing to spend on manufactured goods like cars, TVs and electronic items. Middle-class households are taking advantage of low interest rates on consumer and housing loans.
The per capita income at current prices rose by 10.7 percent in 2004-05 from $446 in the previous year, even though the real GDP growth slowed down — in line with earlier government estimates — to 6.9 percent from 8.5percent.
In the final quarter of 2004-05, there was an acceleration of real GDP growth to 7 percent from 6.4 percent in Q3, showing the continued growth momentum in services and manufacturing.