India’s per capita income growth set to touch double digits in FY19
India’s per capita national income is set to grow at 11.1% in the financial year 2018-19, fastest in last five years, according to advanced GDP estimates released by the government on Monday. A Times of India report citing the government data said India’s per capita income is set to grow to Rs 1,25,397 in FY19 at current prices, faster than 8.6% growth achieved in the previous year. At 2011-12 prices, per capita income is expected to grow to Rs 91,921, 6.1% higher than the previous year, the daily mentioned.
However, economist point out that there is huge divergence among state so far as per capita income is concerned and this needs attention.
“The good news is that the five-year CAGR (FY15 to FY19) of nominal per capita income is 9.7%. However, the not so good news is the divergence in per capita income across states,” the publication quoted Soumya Kanti Ghosh, group chief economic adviser at SBI as saying.
Ghosh said per capita income of seven out of 18 states he studies were above the national average while 11 were below the national average till FY18. “Real per capita income CAGR grew by 6% during FY14 to FY18. States need to push policies in accordance with the emerging demographic dividends,” Ghosh added.
According to the ToI report, economist attributed the increase to a string of factors, including low inflation, expectations of a pick up in overall growth as well as a growth in remittances. But they also cautioned that since the estimates are provisional, it could also be revised downwards.
India’s GDP is estimated to grow at a rate of 7.2 per cent in the fiscal year 2018-2019 as against a growth rate of 6.7 per cent in the previous financial year, Central Statistics Office (CSO) data revealed on Monday, January 9, 2019.
According to CSO’s first advance estimates of national income, electricity, gas, water supply and other utility services, construction, manufacturing, public administration, defence and other services are the sectors which logged a growth rate of more than 7 per cent.
Source: ET NOW DIGITAL