New Delhi : In the next seven year India’s GDP will touch USD 6 trillion, and per capita income will increase to USD 4,000 by 2030, Standard Chartered Bank Research said in a report on Friday.
India’s GDP currently stands at about USD 3.5 trillion and per capita income at USD 2,450 during CY 2022.
While India turning into the third largest economy by the end of the decade is a known narrative, its potential transition to an upper-middle- income economy from a lower-middle- income is an under-appreciated theme, the report said.
India’s drivers of growth will be consistent policy reforms, macro stability, healthy financial sector, large share of working population, digitalisation and political stability, public capex push, it added.
The report further said that several states are likely to be far wealthier than the national average by 2030 and household consumption expenditure may be similar to India’s current GDP levels by then.
These include states like Telangana, Delhi, Karnataka, Haryana, Gujarat and Andhra Pradesh, among others.
“We believe more measures to address job creation, infra gap, income inequality, climate challenges could further boost India’s growth prospects,” it added.
According to the United Nations, as many as 415 million Indians moved out of poverty in the 15-year period between 2005-2006 and 2019-2021.
The latest update of the global Multidimensional Poverty Index (MPI), which was released by the United Nations Development Programme (UNDP) and the Oxford Poverty and Human Development Initiative (OPHI) at the University of Oxford earlier this month, said that 25 countries, including India, successfully halved their global MPI values within15 years.
Meanwhile, the Standard Chartered Bank Research said that demand for consumer durables will increase especially amid a push for digitisation by 2030, while the manufacturing base will likely get better as demand outlook improves.
“Political stability, reforms have created a conducive environment for sustaining growth,” the report said.
However, vulnerability to climate risk events is high, it added.
