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India's Per Capita Income Surges 10x: A Demographic Dividend
24 Feb
Summary
- India's per capita income grew nearly tenfold from $274 in 1981 to $2700 in 2024.
- Declining population growth, faster than global rates, is a key driver of income increase.
- India's economy share in global economy tripled from 1.1% in 1991 to 3.5% in 2024.
India's per capita income has surged approximately tenfold, growing from $274 in 1981 to about $2700 in 2024. This rapid increase is significantly attributed to a decline in India's population growth rate, which has outpaced global rates since 2014. The Deputy Governor of RBI, Poonam Gupta, noted that falling fertility rates, coupled with increasing prosperity and education, are driving this demographic shift.
Further boosting economic performance, India's share in the global economy has tripled from 1.1% in 1991 to 3.5% in 2024. This acceleration in growth, averaging 5.7% in the 1980s and reaching 7.7% in the last four years, reflects sustained macroeconomic stability and policy consistency. These factors assure a continuously improving economic trajectory for India.
