India’s GDP is getting bigger than France’s, and getting closer to the UK is not something to be proud of if it continues to rank “beautiful” among middle-income countries in the lower bracket. In fact, all the focus on India being a $5 trillion or $10 trillion economy is meaningless if the country can’t relatively increase its per capita income levels. India’s GDP per capita, which is an indicator of the country’s overall income level, will be $2,277 in 2021, according to the World Bank. It did slightly better than the Republic of the Congo ($2,214), Angola ($2,137) and Nigeria ($2,085), while countries such as the Solomon Islands ($2,337), Ghana ($2,337) $445) and Bangladesh ($2,500) were ahead.

Of course we can measure the size of our GDP, and the fact that it is now bigger than Italy, France and could soon overtake Britain and Germany, we are only half aware of the truth. The size of the economy is not the same as the level of prosperity. France’s GDP per capita ($43,518) is 20 times higher and Italy’s ($35,515) is 17 times higher than India’s. In India, UP ranks second or third (and has been for some time) in terms of GDP size, but second in GDP per capita (higher than Bihar). Even Jharkhand has a better GDP per capita than UP.

For a country the size of India, with 50% of the population in the 0-25 age category, it will grow at a relatively higher rate than most other economies. In fact, the difference in GDP growth rates between India and any European country could be 400 to 500 basis points or more for a long time.
Therefore, the government should focus more on increasing income levels at home and removing the label of lower-middle income countries (countries with a GDP per capita of up to $2,582). The goal should also be to make India’s growth more inclusive. A country where those earning 25,000 rupees or more are the top 10% earners doesn’t do much justice for most of the population.

India’s GDP is getting bigger than France’s, and getting closer to the UK is not something to be proud of if it continues to rank “beautiful” among middle-income countries in the lower bracket. In fact, all the focus on India being a $5 trillion or $10 trillion economy is meaningless if the country can’t relatively increase its per capita income levels. India’s GDP per capita, which is an indicator of the country’s overall income level, will be $2,277 in 2021, according to the World Bank. It did slightly better than the Republic of the Congo ($2,214), Angola ($2,137) and Nigeria ($2,085), while countries such as the Solomon Islands ($2,337), Ghana ($2,337) $445) and Bangladesh ($2,500) were ahead. Of course we can measure the size of our GDP, and the fact that it is now bigger than Italy, France and could soon overtake Britain and Germany, we are only half aware of the truth. The size of the economy is not the same as the level of prosperity. France’s GDP per capita ($43,518) is 20 times higher and Italy’s ($35,515) is 17 times higher than India’s. In India, UP ranks second or third (and has been for some time) in terms of GDP size, but second in GDP per capita (higher than Bihar). Even Jharkhand has a better GDP per capita than UP. For a country the size of India, with 50% of the population in the 0-25 age category, it will grow at a relatively higher rate than most other economies. In fact, the difference in GDP growth rates between India and any European country could be 400 to 500 basis points or more for a long time. Therefore, the government should focus more on increasing income levels at home and removing the label of lower-middle income countries (countries with a GDP per capita of up to $2,582). The goal should also be to make India’s growth more inclusive. A country where those earning 25,000 rupees or more are the top 10% earners doesn’t do much justice for most of the population.