Finance Minister Nirmala Sitharaman announced that India's per capita income is expected to rise by at least $2,000 over the next five years, driven by overall economic growth. This projection comes as the country experiences robust investments and a commitment to ongoing policy reforms. 

Sitharaman highlighted that it took India 75 years to reach a per capita income of $2,730, but the next significant leap is anticipated to occur rapidly. Addressing the Kautilya Economic Conclave, organized by the Ministry of Finance and the Institute of Economic Growth (IEG) in the national capital, she emphasized the demographic advantage of India, where nearly 43 percent of the population is under the age of 24. This youth demographic is a critical driver of organic consumption growth in the country.

“We are much better off than many other countries, even those that are advanced economies”, said the Finance Minister. “Today, they are struggling to grow. We stand out as an economy that has been growing at the fastest rate in recent years, and this trend is expected to continue in the coming years”.

Sitharaman pointed out that India is in a favorable position amid ongoing global geopolitical realignments, which can serve as a structural advantage by fostering robust supply chains with strategically aligned countries.

According to a NITI Aayog document, India is projected to become a $30 trillion economy by 2047, with a per capita income of $18,000 per annum. The country is on track to become the third-largest economy and has the potential to add $1 trillion to its GDP every 1.5 years, aiming for a $10 trillion economy by 2032, supported by strong GDP growth, manufacturing, and infrastructure development.

The narrative of India has shifted from the 'Fragile Five' during the UPA government to being part of the 'Top Five' under the BJP-led NDA government. India is increasingly recognized as the emerging superpower of the 21st century. A Goldman Sachs report also indicates that India is poised to remain among the world's fastest-growing economies until 2030, with Moody’s Analytics projecting a growth rate of 7.1 percent for this fiscal year (FY25).