Sitharaman predicts $2,000 increase in per capita income by 2029
What's the story
Finance Minister Nirmala Sitharaman has projected a significant increase in India's per capita income over the next five years. She anticipates a rise of at least $2,000, driven by overall economic growth. This prediction was made during her address at the Kautilya Economic Conclave, an event organized by the Institute of Economic Growth (IEG) and conceptualized by the Ministry of Finance.
Economic outlook
Sitharaman highlights India's economic growth and potential
Sitharaman highlighted that it took 75 years for India to reach a per capita income of $2,730. However, she expects the next increase to occur much faster due to robust investments, strong fundamentals, and consistent policy reforms. She also emphasized India's demographic dividend with nearly 43% of the population being under 24 years old - a factor that could drive organic consumption growth.
Global standing
India outperforms advanced economies amid global challenges
The Finance Minister asserted that India is faring better than many advanced economies currently facing growth challenges. "Today, they are struggling to grow. We are standing out as an economy which is growing at the fastest rate in the last few years, this year and the next few years also," Sitharaman stated. She also noted that ongoing global geopolitical repositioning could benefit India by fostering robust supply chains with strategically aligned nations.
Future projections
NITI Aayog projects India as $30 trillion economy by 2047
According to a key document from NITI Aayog, India is set to become a $30 trillion economy by 2047 with an annual per capita income of $18,000. The country is also on track to become the third largest economy soon. It has the potential to add $1 trillion to its GDP every 1.5 years and reach a $10 trillion mark by 2032 through strong GDP growth, robust manufacturing, and infrastructure development focus.