Due to the economic reforms being carried out by the Narendra Modi government in the last 10 years, India has taken a big leap beyond the scope of the five weakest economies of the world. Also, IMF data analysis shows that the country’s comparative performance compared to its competitors has also become better, which was not the case earlier.
The standard of living is improving
Higher per capita GDP growth also means that people’s living standards are rising, as each person has more money to spend. IMF data shows that India’s per capita GDP in 2004 was $635, which is 35 percent of the average per capita GDP of $1,790 for the 150 countries listed as “emerging market and developing economies” by the multilateral financial institution. These peer countries include China, Russia, Brazil and parts of South America, Africa, the Middle East as well as Eastern Europe.
News agency IANS reported that this figure of 35 percent had come down to 30 percent by 2014, which shows that India had become relatively poor compared to these 150 better performing countries. However, according to IMF data, this proportion increased from 30 percent in 2014 to 37 percent in 2019. India’s per capita GDP is projected to increase to $2,850 in 2024, which is 42 percent of $6,770 for its peer countries. This means that the gap has narrowed as India’s economic performance over the last 10 years has become better than that of other emerging economies.
Fastest growing economy in the world
IMF data also shows that in 2004, the size of India’s economy was 37 percent of the Chinese economy, but by 2014 it had declined to just 19 percent, as China was achieving much higher growth rates. However, with the Indian economy growing at a much faster rate than China, the tables are turning and the relative size of the economy has increased by 22 percent. India is now emerging as the fastest growing major economy in the world and China is lagging behind in the relative size of the economy compared to the communist country.
India is now poised to become the third largest economy on the back of strong macroeconomic fundamentals, surpassing Germany and Japan and what is equally important, is that the per capita GDP is growing, which is leading to better economic conditions for the people. Reflects better standard of living.
(With inputs from news agency IANS)
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