New Delhi [India]: India’s per capita Gross Domestic Product (GDP) at current prices is projected to reach ₹2.35 lakh in the financial year 2024-25 (FY25), according to a report by the State Bank of India (SBI). This growth is attributed to strong economic policies and improved distribution of benefits through the Direct Benefit Transfer (DBT) system.
Per Capita GDP Sees Significant Growth
The report highlighted a substantial rise in per capita GDP, stating:
“Interestingly, in the last two fiscals, the per capita GDP has jumped by more than ₹40,000 at current prices.”
This increase is largely driven by higher private consumption, particularly in sectors such as healthcare, education, and hospitality.
Key Drivers of Growth
- Private Consumption: Grew at 6.6% in FY25, compared to 4.6% in FY24, reflecting increased household spending.
- Capital Formation: Expected to grow at 6.1% in FY25, down from 8.8% in FY24, signaling a slowdown in investment growth.
- Exports: Benefited from a weaker rupee, growing by 7.1% in rupee terms.
- Imports: Declined due to slower capital formation and lower commodity prices.
SBI emphasized the impact of currency movements, stating:
“The weakening of the rupee boosted the exports growth in rupee terms at 7.1 per cent and slowdown in capital formation and commodity prices resulted in degrowth in imports.”
Economic Growth Trends and Revised GDP Forecast
India’s GDP growth accelerated in the third quarter (Q3) of FY25, expanding by 6.2%, according to data from the Ministry of Statistics and Programme Implementation. This marks an improvement from the 5.6% growth in Q2, which was the lowest in the last seven quarters.
Additionally, Gross Value Added (GVA), which reflects overall economic productivity, increased by 6.2% in Q3, up from 5.8% in Q2, driven by agriculture, industry, and manufacturing.
Given these positive economic indicators, SBI has raised its full-year GDP growth forecast for FY25 to 6.5%, up from its earlier estimate of 6.4% in the First Advance Estimates (FAE) released on January 7.
Conclusion
India’s economic momentum remains strong, fueled by rising consumption, robust policy measures, and industrial growth. However, challenges such as slower capital formation persist. The SBI report signals optimism for continued economic expansion, reinforcing India’s position as a key global growth driver.