For First Time In 4 Years, India's GDP Per Capita Falls Below ₹1 lakh

by GoNews Desk 2 years ago Views 4186

Indians Per Capita GDP Below 1 Lakh For 1st Time I
In one of the worst news at the end of the year 2021 on the economic front, India’s GDP per capita at constant prices (2011-12) fell below ₹1 Lakh for the first time in 4 years for the year 2020-21, and currently stands at ₹99,694. This shows that the recovery from the pandemic’s blow to the economy and the downward slide that begun even before the coronavirus outbreak is yet to be fully checked or reversed.

From 2017-18 onwards, the GDP per capita at constant prices had breached the ₹1 Lakh mark, having steadily increased over the years from ₹71,610 in 2011-12. After hitting the peak at ₹108,645, it has again slipped below ₹1,00,000 in the latest data by the International Monetary Fund (IMF).

The real per capita income at 2011-12 prices is at ₹86,659 for 2020-21 as against ₹94,566 in 2019-20. At current prices, the GDP per capita is estimated at  ₹145,679 against  ₹151,760 in 2019-20.

According to the World bank, India’s GDP per capita was 6.45% of the world’s GPD per capita in 1993, being $301 against the world’s $4,670  and it climbed up gradually to 12.53% in 2011, 14.63% in 2014, and 18.4% in 2019. In 2020, the global GDP per capita (at current prices) was at $10,910 while India’s was $1927.7, i.e., 17.66%. In 2021, the GDP per capita of India and the world were respectively $2,210 and $12,290, which means that India’s was 17.98% of the world’s.

Will The Current Economic Situation Improve?

Data from last year shows that GDP growth was -24.4% in Q12020, while it was 20.1% in Q1 2021. In Q2, the growth was 8.4% against the previous year’s Q2-2020 figure of -7.4%. This means that although the economy is reviving, its growth rate may not be enough to carry its per capita income upwards over the ₹1 Lakh mark again in the short-term future.

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