India's per capita income on rise

By SiliconIndia   |   Friday, 20 July 2007, 07:00 Hrs
Printer Print Email Email
New Delhi: India will break into the ranks lower middle-income countries this fiscal year, reason - economic growth and an appreciating rupee. At $1,021, the Prime Minister's Economic Advisory Council has projected that per capita income would increase over 25.58 per cent this fiscal, against $831 in 2006-07.

This would put India in the same category as China, though the latter's per capita income was estimated at $2,165 in 2006, reported Business Standard.

This year's projected increase in per capita (in dollar terms) is nearly double the average 13 per cent growth between 2003-04 and 2006-07. In the same four-year period, GDP grew an average 8.6 per cent.

For the current year's projection, the exchange rate assumed is Rs 41 to the dollar. "It is a commendable achievement, but there is so much to do. $1,000 is not a big amount these days," said Saumitra Chaudhuri, Council member and ICRA chief economist.

However, World Bank lead economist in India Dipak Dasgupta described it as a "huge thing" in the broader scheme of things. "It really is the effect of higher GDP growth. The exchange rate does not have that big a role," he said.

"This signals that India is no more a poor country - an impression that was anyway fading away. The International Development Association may reduce aid as India is up a step on the ladder," said Arvind Panagariya, professor of economics, Columbia University.

GST rate cut to spur Bengaluru
The realty market in India's tech hub is set to grow as lower Goods and Services Tax (GST) rate..
Fossil Group sells smartwatch
Global watch and accessories maker Fossil Group has announced to sell its smartphone technolog..
SpiceJet plans aggressive
Budget passenger carrier SpiceJet plans to aggressively expand its international networks to fl..
Ola raises Rs 400 cr for electric
Leading ride-hailing cab aggregator Ola on Friday said it raised Rs 400 crore from its early in..