India's Per Capita GDP Rises by Over Rs 40,000 in Two Years: SBI Report

India's Per Capita GDP Growth

India's per capita Gross Domestic Product (GDP) at current prices is estimated to reach Rs 2.35 lakh in the financial year 2024-25 (FY25). This remarkable growth has been attributed to better policymaking and improved benefit distribution through the Direct Benefit Transfer (DBT) system, according to a report by the State Bank of India (SBI).

Over the last two financial years, India's per capita GDP has increased by more than Rs 40,000, reflecting a strong economic trajectory. Private consumption, particularly in sectors such as healthcare, education, and hospitality, has been a major contributor to this growth.

Growth in Private Consumption

Private consumption has been a key driver of India's economic expansion. The per capita private consumption rate grew at 6.6% in FY25, a significant rise from 4.6% in the previous year. This indicates increased spending power and demand for goods and services, further boosting economic activity.

Capital Formation and Trade Trends

While private consumption showed strong growth, capital formation, which reflects investments in infrastructure and businesses, is expected to grow at 6.1% in FY25, down from 8.8% in FY24. This slowdown suggests cautious investment sentiment in certain sectors.

On the trade front, the weakening of the rupee has played a crucial role in boosting export growth by 7.1% in rupee terms. However, capital formation slowdown and declining commodity prices have contributed to a decline in imports.

India's Economic Growth in FY25

India’s economic growth picked up in the third quarter (Q3) of FY25, with GDP expanding by 6.2%, as per the Ministry of Statistics and Programme Implementation. This marks a recovery from the seven-quarter low of 5.6% recorded in the second quarter (Q2).

The Gross Value Added (GVA) also rose by 6.2% in Q3, compared to 5.8% in Q2, driven by strong performances in agriculture and industrial manufacturing sectors.

Revised GDP Growth Forecast

Encouraged by these positive indicators, the SBI report revised India’s full-year GDP growth estimate for FY25 to 6.5%, up from the earlier 6.4% projection in the First Advance Estimates (FAE) published on January 7.

Despite certain economic challenges, including slower capital formation, India's economy continues to show resilience, supported by strong consumption, effective policy measures, and industrial expansion.

Understanding GDP: Meaning, Calculation, and Its Role

What is GDP?

Gross Domestic Product (GDP) is the total monetary value of all finished goods and services produced within a country’s borders during a specific period. It serves as a key indicator of economic performance and overall national prosperity.

How is GDP Calculated?

GDP can be calculated using three primary approaches:

  1. Production Approach: Measures the total output of goods and services.
  2. Expenditure Approach: Adds up all spending on final goods and services (GDP = C + I + G + (X - M)) where:
    • C = Private Consumption
    • I = Investment (Capital Formation)
    • G = Government Spending
    • X = Exports
    • M = Imports
  3. Income Approach: Measures the total income earned by individuals and businesses.

Why is GDP Important?

GDP plays a vital role in determining a country’s economic health and policy decisions. It impacts: ✅ Standard of Living: Higher GDP generally leads to better income levels, employment opportunities, and living conditions. ✅ Investment & Business Growth: GDP growth attracts domestic and foreign investors, boosting business activities. ✅ Government Policy & Planning: Helps in budget allocations, fiscal policies, and monetary regulations. ✅ Global Economic Positioning: A higher GDP improves India’s global economic standing and strengthens international trade relations.

Final Thoughts

India’s rising per capita GDP and economic momentum highlight the country’s robust financial resilience. However, slower capital formation and increasing financial liabilities remain areas of concern. Continued policy support, strategic investments, and economic reforms will be crucial in sustaining this growth in the coming years.

💬 What do you think about India's economic growth? Drop your insights in the comments!

Comments

Post a Comment

Popular posts

Father of RG Kar Victim Loses Faith in Legal System Amid Allegations of CBI Inconsistencies

Image
  A Father’s Frustration with the System The father of the 31-year-old postgraduate doctor who was raped and murdered at Kolkata’s RG Kar Medical College on August 9, 2024, has publicly expressed his deep disillusionment with the Indian legal system. In a powerful and emotional statement, he told ANI that the Central Bureau of Investigation (CBI) has presented contradictory reports in two different courts—the Calcutta High Court and Sealdah District Court. “This is not just a failure of investigation—this is a betrayal. Even Supreme Court judges could not believe the differences in what the CBI is saying. We had faith in the agency, but now, we are losing all hope,” he stated. Allegations of Withheld Evidence The father alleged that the CBI is deliberately withholding key details about the case, despite reportedly knowing who the perpetrators are. He believes the answers lie in his daughter’s phone, which the CBI claims it does not possess—an assertion he disputes. According t...
Read more

Bill Gates Applauds India's 'Namo Drone Didi' Program: A Game-Changer in Rural Empowerment and Agri-Tech

Image
Microsoft Founder Bill Gates Lauds India’s Namo Drone Didi Program In a strong endorsement of India’s evolving rural development model, Microsoft founder Bill Gates has praised the Namo Drone Didi initiative, launched in 2023 by the Government of India. The program empowers rural women by training them to operate drones for agricultural purposes, thereby boosting productivity, reducing manual labor, and enhancing socio-economic inclusion. Gates shared a detailed video and blog highlighting his interaction with three "Drone Didis" from Bihar— Sangita Devi , Sumintra Devi , and Kajol Kumari —during his visit to Delhi last month. He applauded the initiative's early success and expressed optimism about its future scalability. What is the Namo Drone Didi Program? Launched under the vision of Prime Minister Narendra Modi, the Namo Drone Didi scheme is part of a broader strategy to promote women-led development and precision agriculture . It aims to provide 15,000 dro...
Read more

Flight Operations Disrupted Amid India-Pakistan Tensions: Air India and IndiGo Cancel Multiple Flights on May 13, 2025

Image
🔹 Flight Cancellations Announced by Air India On Tuesday, May 13, 2025 , Air India officially announced the cancellation of two-way flight operations to and from the following eight airports : Jammu Leh Jodhpur Amritsar Bhuj Jamnagar Chandigarh Rajkot The airline posted a statement on its official X (formerly Twitter) account, stating: "In view of the latest developments and keeping your safety in mind, flights to and from Jammu, Leh, Jodhpur, Amritsar, Bhuj, Jamnagar, Chandigarh and Rajkot are cancelled for Tuesday, 13th May." Air India further assured passengers that they are closely monitoring the situation and will provide timely updates as operations resume in the coming days. 🔹 IndiGo Follows with Six Airport Cancellations Following Air India's decision, IndiGo Airlines also issued a travel advisory cancelling its flight operations for May 13, 2025, at the following six airports : Jammu Amritsar Chandigarh Leh ...
Read more

Equality Before Law

Image
                            Equality Before Law                                                   Introduction The rule of law was firstly introduced by A.V. Dicey in  his book "The Constitution Of England" in which there is rule which only prevails is law in which all are equal. In simple word if any wrong is being done which is not justifiable  by law committed by anyone that may be president, prime minister, or any individual are punishable because there is supremacy of law. Supremacy of law means the government which is power or the people who elected the government all will be treated equally before law.  Article 14 The Indian Constitution 1949, Article 14 guarantees "Equality before law The State shall not deny to any person equality before the law or the...
Read more

Your Complete Online Guide to Land Records and Services in Bihar

Image
Introduction: The Shift Towards Digital Land Governance India’s land management system has traditionally relied on manual records maintained at local government offices. While foundational to governance and ownership, this manual system often led to bureaucratic delays, land disputes, and lack of transparency. Recognizing these issues, state governments across India have progressively adopted digital systems to make land-related services accessible, transparent, and efficient. Bihar Bhumi Portal: A Digital Leap in Land Management One of the leading examples of this digital transformation is Bihar’s Bihar Bhumi portal ( https://biharbhumilrc.com/ ), developed and maintained by the Revenue and Land Reforms Department of Bihar . The portal has become a centralized platform providing a wide range of land-related services to citizens, eliminating the need for in-person visits to land offices. Purpose and Vision The key objective behind launching the Bihar Bhumi portal was to empower...
Read more

Rights of a Arrested Person in India

Image
One of the basic and important feature of our legal system in benefits goes to arrested person on the principal of presumption of innocence of the accused person until he/she found guilty at the end of trail on legal evidence. Rights include the rights of the accused at the time of arrest, at the time of search and seizure, during the process of trail and the like. In well known case of Meneka Ghandhi v. UOI it was interpreted that the procedure adopted  by the state must be fair, just and reasonable. The certain rights which arrested person need to know are as follows: 1. Right To Silence "it was essentially right to refuse to answer and incriminate oneself in the absence of proper charge. Not initially, the right to refuse to reply to proper charge." the Justice Malimath Committee. The dependent if he so desires can be witness in his trial. His confession in police station is not admissible in court. Only to the magistrate is admissible. The Indian constitution guarantees e...
Read more

Evolution of Constitution under Article 14 to 18

Image
 Evolution of Constitution under Article 14 to 18 INTRODUCTION The idea of equality referenced under Article 14 to Article 18 upgrades a more extensive idea and a more extensive part of the examination as the subject of equity itself shapes a vital and powerful idea in itself. The idea of fairness overwhelms the exceptionally two significant ideas of equivalent security of law and equity under the steady gaze of the law. Likewise, the idea of uniformity wins in a wide range of establishments and accommodates equivalent freedoms for people with the abrogation of unapproachable and nullification of titles. The idea is a more extensive methodology as it is significant for society to look to each individual with a similar methodology regardless of his sexual orientation, rank, and religion. The law is visually impaired and is equivalent for each individual as it says that balance wins for each individual and each individual has the option to be secured by the law. Evolution  The f...
Read more

Supreme Court Advocates for Childcare and Feeding Rooms in Public Spaces

Image
Supreme Court Advocates for Childcare and Feeding Rooms in Public Spaces The Supreme Court of India has suggested that the Union Government develop a comprehensive policy addressing the construction of feeding rooms and childcare facilities  in public places. This move aims to ensure that nursing mothers and their children can access basic amenities in a dignified and private manner, reinforcing their fundamental rights under the Indian Constitution. SC Encourages Policy Formulation A bench comprising Justice BV Nagarathna  and Justice N Kotiswar Singh  highlighted the absence of a structured framework to address this pressing issue. The court advised the Centre to propose a policy that could then be implemented across the states, scheduling the next hearing for December 10, 2024.   The apex court emphasized that before issuing formal directions, it was crucial to understand the Centre’s perspective on implementing the petitioner’s demand for childcare and feedi...
Read more

Delhi High Court Grants Bail to Former Bank Manager Accused of Defrauding Woman of ₹13 Crores

Image
Delhi High Court Grants Bail to Former Bank Manager  Accused of Defrauding Woman of ₹13 Crores  The Delhi High Court has granted bail to Varun Vashista , a former bank manager accused of embezzling over ₹13 crores from a customer’s account while working at ICICI Bank's Vikas Puri branch. The bail was approved by Justice Amit Mahajan on November 12, 2024, after considering the evidence and facts of the case.   Details of the Case The allegations against Vashista stem from his role as a branch manager. The complainant and her husband had entrusted him with managing their investments, amounting to ₹13.5 crores, between 2019 and 2023.   The complainant discovered in January 2024 that nearly ₹12 crores had been **siphoned off** from her account. Key allegations include:   - Creation of Fake Fixed Deposits: The accused reportedly created fraudulent fixed deposit accounts in the complainant’s name.   - Misappropriation of Funds: Funds were tr...
Read more

Exploring Articles 236 to 238 of the Indian Constitution: A Contemporary Discourse

Image
Exploring Articles 236 to 238 of the Indian Constitution: A Contemporary Discourse Introduction : The Indian Constitution, as the guiding framework of the nation, is a living document that requires periodic review and adaptation to meet the needs of a rapidly changing society. Articles 236 to 238 of the Indian Constitution pertain to the High Courts in the states and Union territories. In this article, we delve into a discussion surrounding these articles, analyzing their relevance in the modern era, and exploring relevant case laws that highlight their significance in contemporary India. Article 236: Interpretation : Article 236 deals with the interpretation of the provisions related to High Courts in Part VI of the Indian Constitution. In the modern era, this article plays a pivotal role in ensuring that the functioning and jurisdiction of the High Courts are correctly understood and implemented. One of the landmark cases that has shaped the interpretation of this article is the case...
Read more