India's Per Capita Income Doubles Since 2014-15

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New Delhi: India's per capita income in nominal terms doubled to Rs 1,72,000 since 2014-15 when the Narendra Modi-led NDA came to power but uneven income distribution remains a challenge.
As per the National Statistical Office (NSO), the annual per capita (net national income) at current prices is estimated at Rs 1,72,000 in 2022-23, up from Rs 86,647 in 2014-15, suggesting an increase of about 99 percent.

In real terms (constant prices), the per capita income has increased by about 35 percent from Rs 72,805 in 2014-15 to Rs 98,118 in 2022-23. ()

"You are looking at GDP in current prices, but if you account for inflation, the increase is much less," said noted development economist Jayati Ghosh on doubling per capita income in nominal terms. She further said distribution is critical. ()

"Most of this increase has accrued to the top 10 percent of the population. By contrast, median wages are falling, and possibly even lower in real terms," said the former JNU professor. As per the NSO data, the per capita income dipped during the Covid period, both in real and nominal terms. However, it has picked up in 2021-22 and 2022-23.

Former director of the premier economic research institute NIPFP Pinaki Chakraborty said as per the World Development Indicator database, the average growth of India's per-capita income in real terms for the period from 2014 to 2019 was 5.6 percent per annum.

"This growth is significant. We have seen improvements in outcomes related to health, education, and economic and social mobility. Covid impacted us badly. However, we have seen significant economic recovery after Covid.

"Sustaining per-capita income growth at 5 to 6 percent per annum with appropriate redistributive policies will help sustain this momentum. We also have to factor in unevenness in growth within the country. Balanced regional development will act as a catalyst for higher growth," he said.