France economy

Prosperity levels matter, not size of GDP – The New Indian Express

India’s GDP is becoming bigger than France’s, and getting closer to the UK is not a matter of great pride if it continues to be among the lower middle income countries. In fact, all the focus on India becoming a $5 trillion or $10 trillion economy is meaningless if the country cannot relatively increase its per capita income levels. India’s GDP per capita, which is an indicator of general income levels in the country, was $2,277 in 2021, according to the World Bank. This is just slightly better than the Republic of Congo ($2,214), Angola ($2,137) and Nigeria ($2,085), while countries like the Solomon Islands ($2,337), Ghana ($2,445) and Bangladesh ($2,500) are ahead.

Of course we can trap the size of our GDP, and the fact that it is now bigger than Italy, France and could soon overtake the UK and Germany, we only recognize the half truth . The size of the economy is not the same as the levels of prosperity. The per capita GDP of France ($43,518) is 20 times greater than that of India ($35,515) and that of Italy ($35,515). Back in India, UP is second or third (and it has held that position for quite a long time) in terms of the size of its GDP, but is second in GDP per capita (higher than Bihar). Even Jharkhand has better GDP per capita than UP.

For a country as large as India, with 50% of the population in the 0-25 age category, it will grow at a relatively higher rate than most other economies. In fact, the GDP growth rate differential between India and any European country could very well be 400 to 500 basis points or even more for a long time.
The government should therefore focus more on increasing income levels in the country and get rid of the label of a lower middle income country (country with a GDP per capita of up to $2,582). The aim should also be to make India’s growth more inclusive. A country where those earning 25,000 or more make up the top 10% is not really doing justice to a large portion of the population.

India’s GDP is becoming bigger than France’s, and getting closer to the UK is not a matter of great pride if it continues to be among the lower middle income countries. In fact, all the focus on India becoming a $5 trillion or $10 trillion economy is meaningless if the country cannot relatively increase its per capita income levels. India’s GDP per capita, which is an indicator of general income levels in the country, was $2,277 in 2021, according to the World Bank. This is just slightly better than the Republic of Congo ($2,214), Angola ($2,137) and Nigeria ($2,085), while countries like the Solomon Islands ($2,337), Ghana ($2,445) and Bangladesh ($2,500) are ahead. Of course we can trap the size of our GDP, and the fact that it is now bigger than Italy, France and could soon overtake the UK and Germany, we only recognize the half truth . The size of the economy is not the same as the levels of prosperity. The per capita GDP of France ($43,518) is 20 times greater than that of India ($35,515) and that of Italy ($35,515). Back in India, UP is second or third (and it has held that position for quite a long time) in terms of the size of its GDP, but is second in GDP per capita (higher than Bihar). Even Jharkhand has better GDP per capita than UP. For a country as large as India, with 50% of the population in the 0-25 age category, it will grow at a relatively higher rate than most other economies. In fact, the GDP growth rate differential between India and any European country could very well be 400 to 500 basis points or even more for a long time. The government should therefore focus more on increasing income levels in the country and get rid of the label of a lower middle income country (country with a GDP per capita of up to $2,582). The aim should also be to make India’s growth more inclusive. A country where those earning 25,000 or more make up the top 10% is not really doing justice to a large portion of the population.