Union Finance Minister Nirmala Sitharaman has expressed confidence in India’s economic future, forecasting a significant rise in the nation’s per capita income over the next five years. During her address at the Kautilya Economic Conclave, she estimated that the country’s per capita income would increase by an additional $2,000 within this period. Sitharaman highlighted that while it took India 75 years to reach a per capita income of $2,730, this next leap is expected to happen much more rapidly. The increase will be driven by a combination of strong domestic consumption and the country’s youthful demographic.
Consumption, which accounts for over 60% of India’s GDP, plays a pivotal role in fueling growth. Sitharaman also pointed to the country’s young population, noting that almost 43% of Indians are under 24 years old. This demographic factor is a crucial engine for organic economic expansion. The Finance Minister praised the competitiveness of India’s financial system on the global stage and emphasized the need to nurture young talent to maintain this upward momentum. Drawing a comparison with China’s economic trajectory, she noted that favorable international trade and investment environments had accelerated China’s development. In addition, she remarked that India continues to stand out for its robust performance, with an 8.2% growth rate in 2023-24, while the Economic Survey for the year forecasts a 6.5% to 7% growth rate for the current fiscal year.
