It will rise to at least $2,000 a capita income in the next five years, said Finance Minister Nirmala Sitharaman on Friday. It took 75 years to reach the $2,730 per capita income. "The next jump will happen very fast. It has healthy investments, good fundamentals, and continuation in policy reforms," she said.
Speaking at the Kautilya Economic Conclave, an initiative of the Ministry of Finance and instituted by Institute of Economic Growth (IEG), in the capital, FM Sitharaman said the other benefit which the country has is its demographic dividend wherein around 43% of the population is below 24 years of age, which is a key driver for organic consumption growth. She said that we are far better off than many other countries, even if they are advanced economies. "Today, they are struggling to grow. We are standing out as an economy which is growing at the fastest rate in the last few years, this year and the next few years also, for which we can make predictions," said the Finance Minister. "India finds herself amidst the global geopolitical repositioning process that has been underway. This repositioning can become a structural enabler to India's advantage through strong supply chains with countries where there is strategic congruence," she added.
India stands to become a $30 trillion economy with a per capita income of $18,000 per year by 2047, according to a key NITI Aayog document. It is on its way to becoming the world's third largest economy soon and may add $1 trillion to its GDP every 1.5 years to reach the mark of a $10 trillion economy by 2032, driven mainly by strong GDP growth and robust manufacturing and emphasis on building infrastructure.
From the "Fragile Five" during the UPA governments, the country has graduated into "Top Five" with the BJP-led NDA government. The country is touted to be the superpower of the 21st century. According to a report from Goldman Sachs, India is placed to be one among the world's fastest-growing economies until 2030. Meanwhile, the Indian economy will grow fast this fiscal year at 7.1 percent, Moody's Analytics said.
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