But there are troubling caveats. India is the poorest nation among the top three. Its per capita income at current exchange rates is just under $2,500. Per capita income in the US is $65,000. In China it is $12,000.
The number of absolute poor in India has declined gradually over the decades. In 1947, the number was over 80 per cent. In 2022, several surveys put the figure at around 10 per cent though there are wide variations.
High average annual GDP growth of around seven per cent over the past 20 years has created in effect three Indias. At the top is a thin slice of perhaps 100 million Indians comprising less than 10 per cent of India’s population with a per capita income at current exchange rates that is in the range of $15,000 (Rs 12 lakh) a year. That places them in the category of mid-income countries in Latin America and parts of Southeast Asia.
The contribution of this thin slice of relatively affluent Indians to total GDP (100 million x $15,000) is roughly $1.50 trillion. They will thus contribute over 40 per cent to India’s estimated total GDP of $3.60 trillion in 2022-23.
This lies at the heart of India’s income inequality. Those at the top of the pyramid are relatively rich. The rest are relatively poor. But there is a slice in the middle of the two extremes: the aspirational middle-class. Its per capita income of around $5,000 at current exchange rates is double India’s average per capita income of $2,500. The middle rung comprises approximately 200 million Indians. Their contribution to total GDP (200 million x $5,000) is $1 trillion.
Denne historien er fra October 08, 2022-utgaven av Businessworld India.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent ? Logg på
Denne historien er fra October 08, 2022-utgaven av Businessworld India.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent? Logg på
Gauging Trumponomics For India
Despite some shortto mediumterm headwinds in trade and immigration, the broader Indo-US vision of counterbalancing China’s influence is expected to ensure continued cooperation under Trump 2.0
Reflections on Consciousness and Creation
Indian-American DEEPAK CHOPRA on the nature of the universe, the digital fabric of existence, and the power of a conscious mind
MORE TAKE TO DRIVING IN STYLE
High-end luxury vehicles are no longer part of a niche market, but a rapidly expanding segment of automobile sales, driven by changing consumer preferences, rising disposable incomes and better infrastructure
India's Growing Affinity for Swiss Watches: A Luxury on the Rise
NDIA'S ROBUST ECONOMIC growth, projected to exceed 6 per cent in 2024 and 2025, is fostering a rising demand for aspirational products. As disposable incomes increase, particularly among the expanding middle class, luxury goods such as Swiss-made watches are gaining popularity.
An ENRiching Outlook
KPMG's latest report shows energy CEOs being optimistic about the sector's outlook. ANISH DE, Global Head, ENRC, KPMG speaks to BW Businessworld's Arjun Yadav on what's driving this confidence
Paving the Path to a Sustainable Future
Salesforce's ESG journey has made an impact beyond the company. SUNYA NORMAN, SVP of ESG Strategy and Engagement at Salesforce, shares more on how the tech giant integrates sustainability into its core operations, supporting global goals while empowering employees
LEADERSHIP TRANSITION AT XIAOMI INDIA
Xiaomi India is experiencing a leadership evolution, beginning with Muralikrishnan B's departure as President by the end of 2024. This change underscores Xiaomi's shift towards nurturing local talent amidst dynamic global shifts. The story tracks key transitions from Manu Kumar Jain's leadership to Muralikrishnan B's impactful tenure, along with recent strategic hires, highlighting Xiaomi's alignment towards market adaptability and consumer focus
WEAVING SUSTAINABILITY
Once a modest home textile manufacturer, Jindal Worldwide has evolved into a vertically integrated textile powerhouse, spanning critical segments of the yarn and fabric value chain
FORCE FOR GOOD
FY24 saw capacity expansions for Century Enka in nylon and polyester segments, along with investments in modernisation, renewable energy, and safety initiatives
REIMAGINING TOMORROW
For V-Guard, tomorrow signifies progress, driven by today's actions, setting the foundation for future growth and value creation for all stakeholders