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While the economy has crossed $4 trillion in absolute terms, the per capita income hovers around $2,800 to $2,900.
NITI Aayog CEO BVR Subrahmanyam hailed the milestone as a historic turning point, officially placing India as the fourth-largest economy in the world.
As India celebrates a landmark economic achievement by crossing the $4 trillion GDP threshold, questions are being raised about what this means for the average Indian. NITI Aayog CEO BVR Subrahmanyam hailed the milestone as a historic turning point, officially placing India as the fourth-largest economy in the world. But the mood isn’t entirely celebratory.
Almost immediately, the opposition, particularly the Congress party, turned the spotlight away from the topline GDP figure to the income of a common man in the country. While GDP growth is important, their arguments focus on the per capita income and if the economic expansion has truly translated into better lives for ordinary Indians.
The China and US Benchmarks
To put India’s economic standing in context, it’s useful to look back at how other global giants progressed once they reached similar GDP milestones.
In 2008, China crossed the $4 trillion mark. At that time, its per capita income was about $3,500. What followed was a decade of rapid economic transformation: massive infrastructure investments, a booming export sector, and social reforms that lifted millions out of poverty. Today, China’s per capita income exceeds $12,000, a more than threefold increase over 15 years.
The United States reached the $4 trillion GDP mark much earlier, in 1987. Back then, its per capita income was already around $17,000. The US built its wealth on innovation, a mature service sector, and cutting-edge technology. In the decades since, its per capita income has risen to more than $65,000.
Where Does India Stand?
India today finds itself at a crossroads. While the economy has crossed $4 trillion in absolute terms, the per capita income hovers around $2,800 to $2,900. Critics argue that this disconnect underscores the uneven nature of growth. Yet, the current figures also mark a dramatic improvement: in 2004, India’s per capita income was a mere $620. The nearly fivefold increase over two decades speaks to a steadily rising economic tide.
Economic milestones can ring hollow if they don’t reflect in people’s pockets. But history suggests that this moment could be a stepping stone, not a dead end. China’s own journey shows that hitting $4 trillion is less a culmination and more a launchpad, provided the right policy mix is in place.
India has its own unique advantages. A young and dynamic population offers a powerful demographic dividend. The digital economy is expanding rapidly, and India’s role in the global supply chain is growing, especially as companies seek alternatives to China. These are powerful engines of future growth.
To transform GDP numbers into tangible prosperity, India will need a consistent, long-term economic vision. Investments in infrastructure, education, and healthcare, along with an emphasis on inclusive growth, will be crucial. Social stability and scalable policies, much like China employed, could help convert economic momentum into widespread improvement in living standards.
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