A research report predicts that India’s per capita income is expected to increase by nearly 70% to USD 4,000 by fiscal year 2030, up from USD 2,450 in fiscal year 2023. This growth is anticipated to help the country become a middle-income economy with a GDP of USD 6 trillion, with more than half of it coming from household consumption.
Over the years, per capita income and GDP in India have shown a consistent upward trend. From USD 460 in fiscal year 2001, per capita income rose to USD 1,413 in fiscal year 2011 and further to USD 2,150 in fiscal year 2021.
The report identifies external trade as the primary growth driver, projected to nearly double to USD 2.1 trillion by 2030 from USD 1.2 trillion in fiscal year 2023, based on an assumption of a 10% annual nominal GDP growth rate.
The second significant growth driver is household consumption, expected to surge to USD 3.4 trillion by fiscal year 2030, equivalent to the current GDP size, up from USD 2.1 trillion in fiscal year 2023. Household consumption currently contributes approximately 57% to the GDP.
Prime Minister Narendra Modi aims to achieve a USD 5 trillion economy during his next term, positioning India as the third-largest economy after the US and China.
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