Per Capita Income: After the NDA government formed under the leadership of Prime Minister Narendra Modi from the year 2014-15, now the per capita income of the country has doubled. But does this mean that the income of every person living in the country has doubled, it is not so.
Doubled per capita income
According to the data released by the National Statistics Office (NSO), the per capita income at ‘current price’ for the year 2022-23 has increased to Rs 1,72,000 annually. Which was Rs 86,647 in the year 2014-15, that is, compared to today’s per capita income, now it is 99% more.
Despite doubling of per capita income, unequal distribution of income is still a problem. At ‘constant prices’, per capita income was Rs 72,805 in 2014-15, which increased by 35% to Rs 98,118 in 2022-23.
What does increase in per capita income mean?
Now they understand what is meant by increase in per capita income. It means that how much is the average of every person in the country. To get this, the income of the population of the entire country is divided by the total population of the country, whatever amount comes, it is considered as per capita income. In this the income of every section of the society is added, in this the income of rich and middle class and poor people is added.
Has everyone’s income doubled?
India’s population is 140 crores, in such a way, the benefit of increase in per capita should be given to all and equally, its scope is less. The second thing is that only a handful of the country’s population has a huge portion of its total wealth. The people of low population do not get the benefit of increasing their income. Famous economist Jayati Ghosh says that you are looking at GDP at current prices, but when you look at inflation, the increase in per capita income is very less.
According to NSO data, per capita income fell during Covid, although after that it was seen to increase in 2021-22 and 2022-23.
Nagesh Kumar, director of the Institute for Studies in Industrial Development (ISID), says that per capita income has increased in real term and it is also visible in increasing prosperity. They say that per capita income means average income. Averages hide growing inequalities. The increase in income on the higher side means that there cannot be much change in the income of the people standing on the lower rung. However, India will remain the shining star of the world economy.
