Meaning and Significance
Per capita Income means how much an individual earns, of the yearly
income that is generated in the country through productive activities.
It means the share of each individual when the income from the
productive activities is divided equally among the citizens. Per capita
income is reported in units of currency. Per capita income reflects the
gross national product of a country. Per capita income is also a measure
of the wealth of a population of a nation when compared with other
countries. It is expressed in terms of commonly used international
currency such as Euro, Dollars because these currencies are widely
known.
Per Capita Income of India: Current Scenario
The per capita income of India has gone up as much as 14.2% in 2006-07.
According to May 2007 data, the per capita income of India was Rs 29,382
a year or Rs 2,448.5 a month. This high rise in the per capita income of
people has enabled them to spend more products like mobile, health etc.
This high rise in the per capita income has also increased the savings
of the people. Increase in house hold's income levels and the growth of
9.6% in the GDP have resulted in this increase of the per capita income
of the people.
Per Capita Income of Various Indian States
The two backward states of the Indian republic Jharkhand and Orrissa are
growing at a rapid rate in terms of the per capita income because of
rise of industrial activities in these two states. Karnataka is at the
top of the chart with the fastest growing per capita income (nearly
9.28%) followed by Gujarat with 8.92%.The per capita income in 17 states
is below the national average of 8.4%. Per capita income shows the
purchasing power of the states and so it is very important for the
states to increase the per capita income of each person.
