Finance Minister Nirmala Sitharaman announced on Friday that India will likely see its per capita income rise by at least $2,000 over the next five years, fueled by overall economic growth. Speaking at the Kautilya Economic Conclave, organized by the Ministry of Finance and the Institute of Economic Growth (IEG), Sitharaman emphasized robust investments and strong policy reforms as key drivers of this growth.
Demographic Advantage And Economic Resilience
Sitharaman noted that India took 75 years to reach a per capita income of $2,730, but she expects the next significant increase to happen rapidly due to favorable economic fundamentals. She highlighted the country’s demographic advantage, noting that nearly 43 percent of the population is under 24 years old, which will drive organic consumption growth.
“We are much better off than many advanced economies that are currently struggling to grow. India is standing out as an economy growing at the fastest rate in recent years, and this trend is expected to continue,” she said.
Global Geopolitical Positioning
The Finance Minister also noted that India is navigating a global geopolitical repositioning, which can create robust supply chains with strategically aligned countries and further benefit the economy.
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According to a key NITI Aayog document, India aims to become a $30 trillion economy by 2047, with a projected per capita income of $18,000 per annum. The country is on track to become the third-largest economy soon, with the potential to add $1 trillion to its GDP every 1.5 years, driven by strong GDP growth, manufacturing, and infrastructure development.
Transition To Emerging Superpower
Under the current BJP-led NDA government, India has shifted from being part of the “Fragile Five” to earning recognition among the “Top Five” economies, positioning itself as an emerging superpower for the 21st century.
A recent Goldman Sachs report confirms that India will remain one of the world’s fastest-growing economies until 2030. Additionally, Moody’s Analytics predicts that the Indian economy will grow by 7.1 percent in the current fiscal year (FY25).
