Per capita income doubles to Rs 1.72L since 2014-15

NEW DELHI: India’s per capita income in nominal terms doubled to Rs 1,72,000 since 2014-15 when the Narendra Modi-led NDA came to power but uneven income distribution remains a challenge.

As per the National Statistical Office (NSO), the annual per capita (net national income) at current prices is estimated at Rs 1,72,000 in 2022-23, up from Rs 86,647 in 2014-15, suggesting an increase of about 99 per cent.

In real terms (constant prices), the per capita income has increased by about 35 per cent from Rs 72,805 in 2014-15 to Rs 98,118 in 2022-23. “You are looking at GDP in current prices, but if you account for inflation, the increase is much less,” said noted development economist Jayati Ghosh on doubling of per capita income in nominal terms.

She further said distribution is critical.

“Most of this increase has accrued to the top 10 per cent of the population. By contrast, median wages are falling, and possibly even lower in real terms,” said the former JNU professor.

As per the NSO data, the per capita income dipped during the Covid period, both in real and nominal terms. However, it has picked up in 2021-22 and 2022-23.

Former director of premier economic research institute NIPFP Pinaki Chakraborty said as per the World Development Indicator data base, average growth of India’s per-capita income in real term for the period from 2014 to 2019 was 5.6 per cent per annum.

“This growth is significant. We have seen improvements in outcome related to health, education, and economic and social mobility. COVID impacted us badly. However, we have seen significant economic recovery after COVID.