• durgesh dubey
• 03 Aug, 2024

US per capita

India faces significant challenges in its bid to become a high-income country in the coming decades, according to a recent World Bank study. The report suggests that, at the current pace, it could take India 75 years to achieve a quarter of the per capita GDP of the United States.

The Niti Aayog’s recent approach paper for ‘Viksit Bharat @2047’ outlines India’s ambition to become a $30 trillion economy by 2047, with a per capita income of $18,000, up from its current $3.36 trillion economy and per capita income of $2,392. However, the World Development Report 2024 highlights that at current trends, China would need over 10 years to reach a quarter of US income per capita, Indonesia nearly 70 years, and India 75 years.

The report points out that while India's Prime Minister envisions transforming the nation into a developed economy by 2047, the prospects for middle-income countries have not improved significantly. It notes that the global economy has shifted from being healthy to struggling and is increasingly fragmented due to geopolitical tensions, which have constricted foreign trade and investment.

The growth rates of firms in India, Mexico, and Peru lag significantly behind those in the United States, with expansion rates less than threefold. The report also emphasizes that over 100 countries, including India, face substantial hurdles in their quest to become high-income nations, with India possibly taking nearly 75 years just to reach a quarter of US per capita income. The study draws from the past 50 years, noting that countries typically encounter a "trap" at around 10 percent of annual US GDP per person—approximately USD 8,000 today—while in the middle-income range.