India Per Capita GDP is an estimation of the cost of commodities produced per person in the nation, equivalent to the nation's GDP separated by the total number of people in the nation. It is the total of value added by all resident manufacturers in the financial system sans any product taxes (less subsidies) incorporated in the valuation productivity. It is analyzed without any subtraction for reduction of fictitious capital assets or for deterioration of natural resources.
Per capita GDP is registered in units of currency. When judged against other nations India Per Capita GDP is also a computation of the assets of the nation’s population. It is expressed in terms of widely known international currency such as Euro and Dollar.
Per Capita income in India
India's per capita income is not calculated with the help of purchasing power parity (PPP) which effectively regulates conversion rates for purchasing power of currencies. Infact per capital GDP of India is calculated by the Atlas technique and by allotting official exchange rates for translation.
Significant importance has been given by the analysts to the performance of different Indian states in comparison with each other in context of per capita income. A calculated study has revealed that the states which were better equipped and open to economic liberalization have shown a steady growth rate.
Latest snapshots of India Per Capita GDP
- India’s Per Capita Income stood at Rs 19040 in the year 2002-03
- In 2003-04 India Per Capita Income was Rs 20989.
- Per Capita Income in India was Rs 23241 in 2004-05.
- In the fiscal year 2008-2009 the Per Capita GDP in India was Rs 37490.
- Per Capita GDP at factor rate at regular (1999-2000) prices in the FY 2008-2009 is estimated to reach a level of Rs 3351653.
- In 2008-2009 India attained a growth rate of 7.1 per cent.
- A collective growth rate of 2.6 per cent in the field of agriculture, forestry and fishing was witnessed in the FY 2008-2009
- Service industry had a growth rate of 10.3 per cent in 2008-2009
- During 2008-2009 industry saw a growth rate of 3.4 per cent.
Indian States in terms of Per Capita Income
- Jharkhand and Orissa which are considered as two backward states are increasingly developing in terms of per capita income. This expansion is facilitated by the growth of business activities taking place in these two mineral rich states.
- Jharkhand with per capita income of Rs 14,990 has posted 16.6 per cent rise.
- Orissa is a spectator of an steady growth of 11.5 per cent in per capita income (Rs 14.795)
- The industrialized Gujarat and Karnataka and Tamil Nadu are rated among the top states with per capita income more than Rs 20,734
- Karnataka has per capita income nearly 9.28% followed by Gujarat and Tamil Nadu at 8.92% and 8.46% respectively.
- Delhi and Goa however has lower growth rate at 6.9 per cent and 6 per cent respectively but ranks the highest in per capita income at Rs 49172 and Rs. 47507 respectively.
- Chhattisgarh with turbulence in social, political and economic front registered a growth of 8.8 per cent. However, the average income base is very minimal at Rs.16,365.
- Madhya Pradesh, Uttar Pradesh and Bihar are yet to make a mark in the category of highest per capita income as the growth measures in these states are yet to be implemented.
- At per capita income of Rs. 12566, Rs. 10637 and Rs. 6610 of Madhya Pradesh, Uttar Pradesh and Bihar respectively, these states have the sluggish rates of 2.9 per cent, 3.1 per cent and 3.7 per cent respectively.
- 17 states have per capita income less than the national average of 8.4%.
India’s Per Capita Income in coming years
India’s per capita income is predicted to rise in coming years. FY 2008-09 was expected to witness more than double of per capita income over the last seven years to Rs 38,084, indicating enhancement in the living standards of an average Indian citizen.
The highest increase in per capita income was seen during 2006-07 in terms of percentage which stood at 13.5%. However, after reducing for inflation (at 1999-2000 rates), the per capita income is predicted to grow to Rs25,661, indicating an upsurge of 5.6%.
In conclusion, as compared to other nations, India has performed well inspite of the global financial meltdown.