The size of India’s economy was estimated at $3.5 trillion in 2023 by the World Bank. The per capita income was $2,481, close to the benchmark $2,500. The government is aiming to make India a developed economy by 2047. That would mean a GDP per capita of $20,000. How long will it take for India to go from $2,500 to $20,000. Let’s take a look at how long other countries took to cover the distance.
1 / 5GDP per capita is defined as a country’s total economic output divided by the population. India’s GDP per capita was Rs 2.16 lakh (about $2,500) at the end of March 2024. India wants to be a developed economy, reaching a GDP per capita of $20,000 by 2047, which would mark a century of independence from colonisation.
2 / 5So, how long did other countries take to make this journey from $2,500 to $20,000 GDP per capita? Japan covered the distance in the shortest time i.e. 15 years when its GDP per capita crossed $20,000 in 1987. That’s a compounded annual growth rate of 15%.
3 / 5Asian countries, on average, took 21 years to go from a GDP per capita of $2,500 to $20,000. South Korea, which was the slowest among all Asian countries, crossed the $20,000 mark in 2006, took 23 years, at a CAGR of 9.5%.
4 / 5China’s 2023 GDP per capita was $12,614, which is over 2.7 times growth since 2010, at a CAGR of 11.8%. In comparison, India has grown at 7.8% a year during the same period.
5 / 5At the current rate of about 8%, India may reach a GDP per capita of $20,000 in 2050. If it improves the speed to the Asian average of 10.4%, it may achieve the goal by 2044. This projection of course doesn’t take into account the likely inflation and changes in exchange rate. Source: DSP Asset Managers
