We hear about the achievements of the economic system every day, but the living standards of the middle class and the working class are becoming more and more financially problematic. In short, the rich get richer and the economic problems of the middle class are getting compounded. It is a matter of pride that India has become the fifth-largest economy in the world, but the bottom line is not going to change until the country’s per capita income increases. While the middle class and the working class remain stagnant; Economic prosperity can be said to exist on paper only.
Here it comes to Saint Kabir that… “बड़ा हुआ तो क्या हुआ जैसे पेड़ खजूर, पंथी को भी छाया नहीं फल लागे अति दूर” That is, India will become the fifth largest economy in the world, but it does not change the daily life expenses and savings of the middle class and working class. A palm tree is very tall but it cannot provide shade to a bird nor can its fruit be plucked easily.
India is the world’s fifth largest economy but its per capita is $2550 which is obviously quite less than that of developed countries like USA ($64,150) and Japan ($42,250) but is also less than that of our other neighbor developing countries like Bangladesh ($2650), Srilanka ($3350) and Bhutan ($3500).
Even the authorities and economic experts know that the economic prosperity of the country never goes along with the prosperity of the middle class or the per capita income, so this class remains entrenched. Economic experts have recently said that the economic system reaching number five is worthy of praise. However, there is an urgent need to consider increasing per capita income. Being the fifth-largest economy is admirable but its per capita income ratio is embarrassing. It rarely increases.
India was ranked 142 out of 197 countries in terms of per capita income in 2020. In short, we have a long way to go to increase per capita income and growth. When India joins the ranks of developed countries, the standard of living of the people can also see positive results. At present, India’s growth does not seem to be having an impact on the income of the middle class. Growth is possible in such a way that it benefits the middle class and the working class.
Over the years, we have seen that India’s growth is happening in such a way that the rich are getting richer and the middle class and the working class have remained stagnant. The middle class has reached the upper-middle-class category and is trying to join the ranks of the wealthy. Not every segment gets the same benefit from growth.
According to economic experts, if the growth of the country remains the same at seven percent for two consecutive decades, fundamental changes will be seen in the country and India can join the ranks of developed countries. For which India must adopt new technology in daily use and try to create employment. If employment is not created, growth cannot be sustained and it will be seen to stagnate.
Economic experts believe that the development strategy should be linked to overall growth and the country’s exports should be strong. Currently, exports have collapsed by 6.9 percent, especially in August, with the trade deficit at a 10-month high.
Per capita income (PCI) is determined on the basis of city, region, and country. Per capita income is also determined based on the standard of living of the people of the country. As per latest provisional estimate published on 31st May, 2023, India’s per capita Net National Income (NNI) at constant (2011-12) prices increased by 35.12 percent from Rs. 72,805 in 2014-15 to Rs. 98,374 in 2022-23.
With a population of 13 million, Burundi’s per capita income is $308, the lowest in the world. The world’s poorest countries have a per capita income of around $300 to $500.
A 70 percent jump in per capita income can be recorded in India. According to a bank report, by 2030 India’s per capita income may jump by 70 percent. Prime Minister Modi has said many times that when he takes charge in the next term, he will bring India to the top three economies of the world. If the per capita income increases by 70 percent, then the per capita income can jump from $2550 to $4000. Between 2001 and 2011, per capita income in India was $460 to $1413 dollars. In 2021, it was $2150 dollars. Good to note that the scenario seems to be improving.
Kalpesh has a rich experience of 10 years of handling and leading various projects. He is an independent freelancer associated with Academic Institutions and Social Organizations. He can be mailed at kalpeshsavan@gmail.com
