According to Trading Economics global macro models and analysts, India’s GDP per capita is predicted to reach $1750.00 USD by the end of 2021. According to our econometric models, India’s GDP per capita will trend around 1850.00 USD in 2022 and 1920.00 USD in 2023 in the long run.
What is India’s GDP per capita?
- In March 2021, India’s Gross Domestic Product (GDP) per capita was 1,947.417 USD, up from 2,140.396 USD in March 2020.
- GDP Per Capita data for India is updated yearly and is available from March 1958 to March 2021, with an average of 318.217 USD.
- The values ranged from a high of 2,140.396 USD in March 2020 to a low of 70.396 USD in March 1958.
- From annual nominal GDP and annual population, CEIC calculates GDP per capita and converts it to USD. Nominal GDP in local currency based on SNA 2008, at 2011-2012 prices and Population are provided by the Central Statistics Office. For currency conversions, the Federal Reserve Board’s average market exchange rate is utilized. GDP per capita is calculated on an annual basis, with the year ending in March.
What exactly does GDP per capita mean?
The definition is long. Gross domestic product divided by midyear population equals GDP per capita. Gross domestic product (GDP) at purchaser’s prices is the sum of gross value contributed by all resident producers in the economy, plus any product taxes, minus any subsidies not included in the product value.
What accounts for India’s low GDP?
There are two things that stand out. The Indian economy began to revive in March 2013 more than a year before the current government took office after a period of contraction following the Global Financial Crisis.
But, more importantly, since the third quarter of 2016-17 (October to December), this recovery has transformed into a secular slowing of growth. While the RBI did not declare so, many experts believe the government’s move to demonetise 86 percent of India’s currency overnight on November 8, 2016, was the catalyst that sent the country’s GDP into a tailspin.
The GDP growth rate steadily fell from over 8% in FY17 to around 4% in FY20, just before Covid-19 hit the country, as the ripples of demonetisation and a poorly designed and hastily implemented Goods and Services Tax (GST) spread through an economy already struggling with massive bad loans in the banking system.
PM Modi voiced hope in January 2020, when GDP growth fell to a 42-year low (in terms of nominal GDP), saying: “The Indian economy’s high absorbent capacity demonstrates the strength of the country’s foundations and its ability to recover.”
The foundations of the Indian economy were already weak in January last year well before the outbreak as an examination of key factors shows. For example, in the recent past (Chart 2), India’s GDP growth trend mirrored an exponential development pattern “Even before Covid-19 came the market, there was a “inverted V.”
In India, how is GDP calculated?
- The GDP of India is estimated using two methods: one based on economic activity (at factor cost) and the other based on expenditure (at market prices).
- The performance of eight distinct industries is evaluated using the factor cost technique.
- The expenditure-based method shows how different aspects of the economy, such as trade, investments, and personal consumption, are performing.
In 1947, what was India’s GDP?
However, as the country near the end of its 74th year of independence, it’s worth reflecting on how far it’s come in such a short time. India had a population of 340 million people at the time of independence. Its literacy rate was likewise shockingly low, at about 12%.
India’s population has expanded to about 1.4 billion people in the last seven decades, with a literacy rate of 74.37 percent in 2018 a remarkable feat given the chaotic period it experienced under British control.
India’s GDP was only 2.7 lakh crore when it gained independence in 1947, accounting for only 3% of the world’s total GDP. India overtook France to become the world’s fifth largest economy in 2018, trailing only the United States, China, Japan, and Germany.
According to the Ministry of Statistics and Programme Implementation’s latest data, India’s real GDP is Rs 147.79 lakh crore, accounting for 7.74 percent of world GDP in 2018. (accounting for purchasing power parity). This percentage was expected to climb to about 10% by 2024, but it’s unknown how the COVID-19 pandemic will appear as an economic reality in India in the coming years.
Agriculture accounted for more than half of India’s GDP at the time of independence. Agriculture now makes up just under 16 percent of the Indian economy, despite producing more than five times as much as it did in 1947, indicating the immense structural shifts that the Indian economy has undergone, particularly following the implementation of liberalisation policies in the early 1990s.
While the country’s prosperity since 1947 is unquestionably commendable, it has not been distributed evenly across the country. According to some estimates, India’s share of total world GDP plummeted to as low as 3.8 percent in 1952, prompting former Prime Minister Manmohan Singh to say that the country was the poorest country in the world in terms of per capita income at the turn of the twentieth century.
In this context, the World Bank’s 2017 per capita income statistic for India of $1,940 appears to be significant progress. However, a closer examination reveals that, despite being one of the world’s top five economies, India could not match the per-capita figures of the nations ranked above it in 2018. India’s per capita income was not even higher two years ago than that of some of its Asian neighbors, like Sri Lanka ($4,065), Bhutan ($3,110), and the Maldives ($10,536).
While detractors would argue that India’s large population invalidates any comparisons with those countries, it is worth noting that China, the only country with a population equivalent to India’s, had a per capita income four times greater in 2018.
What is the formula for calculating GDP per capita?
How Is GDP Per Capita Calculated? GDP per capita is calculated by dividing a country’s gross domestic product (GDP) by its population. This figure represents a country’s standard of living.
What is the formula for calculating GDP?
GDP is thus defined as GDP = Consumption + Investment + Government Spending + Net Exports, or GDP = C + I + G + NX, where consumption (C) refers to private-consumption expenditures by households and nonprofit organizations, investment (I) refers to business expenditures, and net exports (NX) refers to net exports.
What is the formula for GDP?
Gross domestic product (GDP) equals private consumption + gross private investment + government investment + government spending + (exports Minus imports).
GDP is usually computed using international standards by the country’s official statistical agency. GDP is calculated in the United States by the Bureau of Economic Analysis, which is part of the Commerce Department. The System of National Accounts, compiled in 1993 by the International Monetary Fund (IMF), the European Commission, and the Organization for Economic Cooperation and Development (OECD), is the international standard for estimating GDP.
Is India’s GDP lower than that of Pakistan?
With a GDP of $2,709 billion dollars in 2020, India’s GDP will be about ten times that of Pakistan’s $263 billion dollars. The disparity is larger in nominal terms (almost ten times) than in ppp terms (8.3 times). In nominal terms, India is the world’s fifth largest economy, while in ppp terms, it is the third largest. Pakistan has a nominal ranking of 48 and a PPP ranking of 24. Maharashtra, India’s most economically powerful state, has a GDP of $398 billion, far exceeding Pakistan’s. Tamil Nadu, India’s second-largest economy ($247 billion), is relatively close. The gap between these two countries was at its narrowest in 1993, when India’s nominal GDP was 5.39 times that of Pakistan, and at its widest in 1973. (13.4x).
In terms of gdp per capita, the two countries have been neck and neck. For only five years between 1960 and 2006, India was wealthier than Pakistan. In 1970, Pakistan’s GDP per capita was 1.54 times that of India. Since 2009, the margin has widened in India’s favor. On an exchange rate basis, India’s per capita income was 1.56 times more than Pakistan’s in 2020, with an all-time high of 1.63x in 2019. The previous year, Pakistan was wealthier than India. Both countries rank near the bottom of the world in terms of GDP per capita. India is ranked 147 (nominal) and 130 (absolute) (PPP). Pakistan is ranked 160 (nominal) and 144 in the world (PPP). There are 28 Indian states/UTs that are wealthier than Pakistan.
In 2020, India’s gdp growth rate (-7.97) will be lower than Pakistan’s (-0.39) after 19 years. India’s GDP growth rate reaches a high of 9.63 percent in 1988 and a low of -5.24 percent in 1979. Pakistan’s inflation rate peaked at 11.35 percent in 1970 and peaked at 0.47 percent in 1971. Pakistan expanded by more than 10% in three years from 1961 to 2017, while India never did. India’s GDP growth rate has been negative for four years, whereas Pakistan’s growth rate has never been negative.
According to the CIA Fackbook, India’s GDP composition in 2017 was as follows: agriculture (15.4%), industry (23%), and services (23%). (61.5 percent ). Agriculture (24.7 percent), Industry (19.1 percent), and Services account for the majority of Pakistan’s GDP in 2017. (56.3 percent ).