India’s per capita income is likely to grow by nearly 70 per cent to USD 4,000 by FY 2030 from USD 2,450 in fiscal 2023, helping it become a middle-income economy with USD 6-trillion GDP, stated a report.
According to the report, the major growth driver will be external trade which may nearly double to USD 2.1 trillion by 2030 from USD 1.2 trillion in fiscal 2023 when the GDP printed in at USD 3.5 trillion. Furthermore, household consumption will also play a key role. The second biggest growth driver will be household consumption which is seen jumping to USD 3.4 trillion by fiscal 2030-which as big as the current size of the GDP-from USD 2.1 trillion in fiscal 2023, Standard Chartered Bank said in a weekend report which assumes a 10 per cent nominal GDP growth annually from now on.
Household consumption is as much as 57 per cent of GDP now.
Last week Prime Minister Narendra Modi said that he would ensure that the economy becomes USD 5 trillion during his next term in office, which will make it the third largest after the US and China. Currently, Japan is at the third slot and Germany at four.
The report sees as many as nine states growing to the upper middle income country status with USD 4,000 in per capita income, up from just one now, the report said sans naming the state.
Currently, Telangana leads in the per capita income league table with Rs 2,75,443 or USD 3,360 in FY23, followed by Karnataka with (Rs 2,65,623), Tamil Nadu (Rs 2,41,131), Kerala (Rs 2,30,601), and Andhra Pradesh with Rs 2,07,771.