New Delhi: India’s Finance Minister, Nirmala Sitharaman, has projected a significant increase in the country’s per capita income, anticipating a rise of at least $2,000 over the next five years. This announcement was made during her address at the Kautilya Economic Conclave in New Delhi.
Minister Sitharaman highlighted that while it took 75 years for India to achieve a per capita income of $2,730, the next leap is expected to occur much more rapidly. She attributed this optimistic forecast to India’s robust economic growth, a burgeoning middle class, and a youthful demographic that drives consumption.
“India’s economic performance in the recent decade has been remarkable, with the country moving from the tenth to the fifth largest economy globally within just five years,” Sitharaman stated. She emphasized that the government’s ongoing economic and structural reforms are expected to further boost income levels and reduce income inequality.
The Finance Minister also pointed out that nearly 43% of India’s population is under 24 years old, which presents a significant opportunity for organic growth in consumption. This demographic advantage, coupled with a strong financial system and innovation-driven economy, positions India for sustained economic growth.
Sitharaman assured that the government remains committed to fiscal discipline, aiming to reduce the fiscal deficit from 5.6% of GDP in FY24 to 4.9% in FY25. This commitment is expected to keep bond yields in check and lower borrowing costs across the economy.
The projected increase in per capita income is seen as a testament to India’s economic resilience and potential, promising a brighter financial future for its citizens.
