India's per capita income crosses Rs 50K

[JAISWAL]

New Delhi: Reflecting growing prosperity, India's per capita income grew by 15.6 per cent to Rs 53,331 per annum in 2010-11, crossing the half-a-lakh rupees mark for the first time, according to government data.

"The per capita income at current prices is estimated at Rs 53,331 in 2010-11, as against Rs 46,117 for the previous year, depicting a growth of 15.6 per cent," said the Quick Estimates of National Income released by the Central Statistical Office (CSO).

The growth in per capita income comes on the back of 8.4 per cent expansion of the Indian economy during the last fiscal.

Per capita income is the earnings of each Indian if the national income is evenly divided among the country's population of around 120 crore. It is an important indicator of overall prosperity in the country.

However, the increase in per capita income at constant (2004-05) prices, after discounting for inflation, was about 6.4 per cent in 2010-11. It was Rs 35,993 in 2010-11, as against Rs 33,843 in the previous year.

According to the figures, the size of the economy at current prices rose to Rs 71,57,412 crore last fiscal, up 17.5 per cent from Rs 60,91,485 crore in 2009-10.

Based on 2004-05 prices, the Indian economy expanded by 8.4 per cent during the fiscal ended March, 2011.

The GDP at constant (2004-05) prices in 2010-11 has been estimated at Rs 48,85,954 crore, as against Rs 45,07,637 crore in 2009-10, as per the Quick Estimates.

The rate of growth in the 2009-10 fiscal stood at 8.4 per cent, as per provisional estimates which were also released today.

As per the Quick Estimates, private final consumption expenditure (PFCE) in the domestic market at current prices was estimated at Rs 43,59,792 crore in 2010-11, as against Rs 37,22,036 crore in 2009-10.

At constant (2004-05) prices, the PFCE stood at Rs 30,87,047 crore in 2010-11, as against Rs 28,52,301 crore in the previous fiscal.

"In terms of GDP at market prices, the rates of PFCE at current and constant (2004-05) prices during 2010-11 are estimated at 56.8 per cent and 58.9 per cent, respectively, as against the corresponding rates of 57.6 per cent and 59.7 per cent, respectively, in 2009-10," the data said.

The per capita PFCE in the domestic market in 2010-11 stood at Rs 36,760 at current prices and Rs 26,029 at constant (2004-05) prices, as against Rs 31,812 and Rs 24,379, respectively, in 2009-10.

Gross Domestic Saving (GDS) stood at Rs 24,81,931 crore in 2010-11, as against Rs 21,82,970 crore in 2009-10, constituting 32.3 per cent of the GDP at market prices, as against 33.8 per cent in the previous year.

"The decrease in the rate of GDS has mainly been due to the decrease in the rates of financial savings of the household sector from 12.9 per cent to 10 per cent and the private corporate sector from 8.2 per cent in 2009-10 to 7.9 per cent in 2010-11," the estimates said.

Gross Domestic Capital Formation, however, increased from Rs 23,63,670 crore in 2009-10 to Rs 26,92,031 crore in 2010-11.

At constant (2004-05) prices, it increased to 19,74,172 crore last fiscal from Rs 18,38,870 in 2009-10.

"The rate of gross capital formation at current prices is 35.1 per cent in 2010-11 as against 36.6 per cent in 2009-10. The rate of gross capital formation at constant (2004-05) prices is 37.7 per cent in 2010-11 as against 38.5 per cent in 2009-10," the Quick Estimates said.

It further said that the change in stocks of inventories, measured as additions to stocks increased at current prices, stood at Rs 2,54,970 crore in 2010-11 as against Rs 1,74,310 crore in the year-ago period....
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India's per capita income crosses Rs 50K

 

[Param]

The concept of Per capita income in a highly unequal society is joke.

 

[civfanatic]

The concept of Per capita income in a highly unequal society is joke.

As far as income distribution is concerned India is actually one of the more egalitarian countries in Asia.

 

[mylegend]

As far as income distribution is concerned India is actually one of the more egalitarian countries in Asia.

Look at Forbes Wealthiest Person Rank then make the Judgement. I think the Gini Index somehow looks different in the rank.

 

[Singh]

Civf is absolutely right, our gini index suggests our income distribution is not bad.

Juxtaposition is extreme yes, on one hand you have tribals in one of the central states with barely enough to eat and then you have Ambani brothers living in their billion dollar mansions. However, statistically most of India is in the middle, and not in the extremes.

@mylegend China has the world's worst income distribution.

 

[amoy]

According to below 2009 graph India is 'better' than Russia

Gini-coefficient of national income distribution around the world (using 2009 info)

 

[mylegend]

Civf is absolutely right, our gini index suggests our income distribution is not bad.

Juxtaposition is extreme yes, on one hand you have tribals in one of the central states with barely enough to eat and then you have Ambani brothers living in their billion dollar mansions. However, statistically most of India is in the middle, and not in the extremes.

@mylegend China has the world's worst income distribution.

China have only one man in top 100 wealthiest rank... Look at India, how many in top 20? Consider the size of Indian Economy being only 1/3 of China, that is shocking

 

[Singh]

According to below 2009 graph India is 'better' than Russia

Gini-coefficient of national income distribution around the world (using 2009 info)

Yes the lower the number the better it is; 0.4 is the warning level. These figures are from 2009, as per world reports India's gini coefficient has been more or less steady. China's is amongst the highest in the world.

 

[civfanatic]

China have only one man in top 100 wealthiest rank... Look at India, how many in top 20? Consider the size of Indian Economy being only 1/3 of China, that is shocking

I don't think you understand how statistics work. When deriving a statistic you must look at the population as a whole (in this case, the incomes of all Indians), not just at the outliers. The Indians on the Forbes Wealthiest List are outliers and their combined incomes are quite small compared to the gross income of the entire Indian middle class.

 

[Yusuf]

The gini index is reflective of the large "middle class" as its called with over 400 million people. That is also the reason why India is a consumer driven economy and managed to notch up impressive growth figures even though it's exports are hardly worth mentioning.

 

[mylegend]

I don't think you understand how statistics work. When deriving a statistic you must look at the population as a whole (in this case, the incomes of all Indians), not just at the outliers. The Indians on the Forbes Wealthiest List are outliers and their combined incomes are quite small compared to the gross income of the entire Indian middle class.

... I do know how statistic work... China have higher Gini index... However, it is often not the private business owner that is causing the problem, it is the state-own enterprise and government wealth. In the last 10 years, Chinese government revenue have increase in a annual pace of over 20% vs 10% annual GDP growth...

I just like the way the system allow people to become extremely wealthy, in China, people with great ambition are being treated as enemy of government. A notable example is illegal nationalization of Rizhao Steel is a notable example, The buyer was state-owned Shandong Iron and Steel Group, which is controlled by the government of Shandong province and hemorrhaged $188.9 million in the first half of 2009. Rizhao saw profits of $87.8 million over the same period... The combination will give Shandong Iron and Steel Group 70% of shares of new company... I'm wordless when I saw the news report... This is why many wealthy Chinese are fleeing the country, how can one stay in a country that government treat his/her property as government property?



It is also the reason why private business often time do not want to make long term investment on R&D. You do not invest if there is a chance of nationalization at little to non compensation.

CCP prefer state-own enterprise because it allow sons of Red Revolutionary continues to control many aspect of economy.

 

[nimo_cn]

The gini index is reflective of the large "middle class" as its called with over 400 million people. That is also the reason why India is a consumer driven economy and managed to notch up impressive growth figures even though it's exports are hardly worth mentioning.

400 million middle class? That is definitely a good-looking number.

What is the size of Indian netizen populaton? Approximate 100 million if my memory serves.

So 3 out of 4 Indian mid-class can't even afford a cheap desktop and a proper internet connection?

Are you [edited] kidding me?

 

[hit&run]

400 million middle class? That is definitely a good-looking number.

What is the size of Indian netizen populaton? Approximate 100 million if my memory serves.

So 3 out of 4 Indian mid-class can't even afford a cheap desktop and a proper internet connection?

Are you fu*king kidding me?

You might be right with western perspective but having computer in an Indian household is still not a priority. I know 30-40 multi-millionaire families (my relatives) with ~ 500,000 dollar mentions and top class cars, still not having a desktop, or if they are having they do not have access to Internet, If they have internet they do not browse.

Last year I gifted my dad i3 2.4 sony vaio with win7 for chatting purposes and he still hasn't used it because of some strange excuses. My Brother in law who manufacture baby garment and dye denim cloth in bulk with 300 employee working for his factory doesn't want to my nephew and niece to operate 65000 rs desktop fearing they will be crooked. :shocked:

 

[tony4562]

I don't know how realiable the gini numbers about India are, I do know however that India is generally regarded as one of the world's absolute poorest countries, with a living standard comparable to most sub-sahara african countries. I also do know that India boasts 4 of the world's 10 richest guys whereas neither China nor Japan, the world's 2nd and 3rd largest economies respectively, have any representatives there. This tells me something about India's wealth distribution or rather the lack of it.

 

[cir]

Still hovering around the $1000 mark? That's pretty low.

 

[p2prada]

I don't know how realiable the gini numbers about India are, I do know however that India is generally regarded as one of the world's absolute poorest countries, with a living standard comparable to most sub-sahara african countries. I also do know that India boasts 4 of the world's 10 richest guys whereas neither China nor Japan, the world's 2nd and 3rd largest economies respectively, have any representatives there. This tells me something about India's wealth distribution or rather the lack of it.

Lot of the poor have assets, but no income. The problem is most of them are farmers who have to rely on a moody Indian weather. This is one good thing about China where droughts are less of a concern than the case in India. South India is basically a large desert which grows stuff only because of the monsoon. Once the rivers are linked, maybe a decade, things will change for the good.

The reason we have the richest is because, let's face it, we are good at business. The ones who are rich can get rich really fast and they haven't yet shown their black money income which is easily 30% of our economy.

If each of these rich can do what Azim Premji did and allocate $2Billion or more for primary education as charity, it would go a long way in helping the country. Some day they may do what Bill Gates or Warren Buffet are doing.

 

[arya]

well we are growing but the fact is that we have to findout black money

black money can change the face

 

[Yusuf]

400 million middle class? That is definitely a good-looking number.

What is the size of Indian netizen populaton? Approximate 100 million if my memory serves.

So 3 out of 4 Indian mid-class can't even afford a cheap desktop and a proper internet connection?

Are you fu*king kidding me?

The porters near my shop earn about Rs 500 a day which means 15000 a month and 180,000 a year. That is many times higher than the per capita. All money unaccounted for. But the guy is illiterate and knows nothing about computers. How rch a person is cannot be gauged from his using a computer or the car he drives. You know for sure that a person driving a BMW 7 series is rich, but you cannot say that the one driving a Suzuki small car is not rich.

Many rich Indians who can afford a merc chose to drive te cheapest of cars.

So don't get your crazy logic in this regard.

And yes keep your language in check or else you won't be around to kid.

 

[RedDragon]

... I do know how statistic work... China have higher Gini index... However, it is often not the private business owner that is causing the problem, it is the state-own enterprise and government wealth. In the last 10 years, Chinese government revenue have increase in a annual pace of over 20% vs 10% annual GDP growth...

I just like the way the system allow people to become extremely wealthy, in China, people with great ambition are being treated as enemy of government. A notable example is illegal nationalization of Rizhao Steel is a notable example, The buyer was state-owned Shandong Iron and Steel Group, which is controlled by the government of Shandong province and hemorrhaged $188.9 million in the first half of 2009. Rizhao saw profits of $87.8 million over the same period... The combination will give Shandong Iron and Steel Group 70% of shares of new company... I'm wordless when I saw the news report... This is why many wealthy Chinese are fleeing the country, how can one stay in a country that government treat his/her property as government property?



It is also the reason why private business often time do not want to make long term investment on R&D. You do not invest if there is a chance of nationalization at little to non compensation.

CCP prefer state-own enterprise because it allow sons of Red Revolutionary continues to control many aspect of economy.

Come on, if you read how this guy become rich, you will found that almost all his money is questionable.

 

[Daredevil]

I don't know how realiable the gini numbers about India are, I do know however that India is generally regarded as one of the world's absolute poorest countries, with a living standard comparable to most sub-sahara african countries. I also do know that India boasts 4 of the world's 10 richest guys whereas neither China nor Japan, the world's 2nd and 3rd largest economies respectively, have any representatives there. This tells me something about India's wealth distribution or rather the lack of it.

Before running-off your mouth you should check the statistics to know who is who and who improved over the time.

http://www.economist.com/research/a...story.cfm?subjectid=7933596&story_id=15766578