The average Indian is now,for the first time ever,earning more than Rs 100 a day. According to the government’s advance GDP estimates published today,per capita income (PCI),measured at current prices,is likely to climb to Rs 38,084,up from Rs 33,283 last year a growth of 14.4 per cent. At constant prices,however,per capita income grew at a rate of only about 5.6 per cent to Rs 25,661 compared to Rs 24,295 last year. It had grown at 7.6 per cent last year.
However,as big as the achievement may seem,the wide disparity between the growth in per capita income at current prices and that at constant prices is largely because of the high average of inflation this year.
Income at current prices,which take into account the average rate of inflation during the year,seem unduly inflated in times of high inflation.
With the economy reeling heavily under a double-digit inflation rate in the first half of the current financial year,it is,hence,no surprise that per capita income at current prices has risen so significantly,said DK Joshi,principal economist,Credit Rating Information Services of India Limited (CRISIL),speaking to The Indian Express.
The GDP,too,is expected to grow massively at 15.5 per cent at current prices,as against 7.1 per cent at constant prices.
Per capita income at current prices has been growing at double-digit rates in the country since 2003-04,when it grew 10.5 per cent to cross the Rs 20,000 mark for the first time. It has since maintained high growth rates ranging between 11-14 per cent and even crossed the
Rs 30,000 mark last year to reach Rs 33,283,which was still marginally short of the Rs 100-a-day milestone.