Per Capita Income

  • Per Capita Income of India is a measure of the average income earned by an individual in India within one year. The Per Capita Income of India is calculated by dividing the National Income of India by its total population.
  • This represents the average annual income and not a measure of an individual’s wealth as a whole.
  • Per Capita Income of India is an important measure of its development. It is an indicator of the standard of living in the country. Per Capita Income of India forms the basis of policymaking in various sectors of the economy.
India's GDP per Capita

Per Capita Income of India in Rupees

  • The economy of India has transitioned from a mixed planned economy to a mixed middle-income developing social market economy with notable public sector in strategic sectors.
  • It is the world’s fifth-largest economy by nominal GDP and the third-largest by purchasing power parity (PPP); on a per capita income basis, India ranked 139th by GDP (nominal) and 127th by GDP (PPP).
  • As per the latest provisional estimate published on 31st May 2023 by MoSPI, India’s per capita Net National Income (NNI) at constant (2011-12) prices increased by 35.12 per cent from Rs. 72,805 in 2014-15 to Rs. 98,374 in 2022-23. Per capita income of India in rupees was around 170 thousand rupees in the financial year 2023.
  • The annual growth rate was 13.7 per cent as compared to the previous year.
  • The India Financial Year wise Average Inflation Rate based on the All India Consumer Price Index and the growth in per capita income from 2014-15 to 2022-23 is given below:
CPI Base 2012=100Growth rate of Per Capita NNI (In %)
YearInflation based on CPIAt Current PricesAt Constant (2011-12) Prices
2020-216.16-4.0(2nd RE)-8.9(2nd RE)
2021-225.5116.9(1st RE)7.6(1st RE)
RE-Revised Estimates, PE- Provisional Estimates
per capita income of india year wise
per capita income of india

Calculation Method of India Per Capita Income

  • Per Capita Income is determined by dividing National Income by the total population of India. The National Income of India is sum total of the monetary value of goods and services that are produced in India within a period of one year.
  • National Income is determined by three methods, which include:
    • Product Method: In this method, National Income is calculated by taking the monetary value of all goods and services produced by the three sectors of the economy which include the primary sector, secondary sector and tertiary sector.
    • Income Method: In this method, National Income is calculated by taking the sum total of income generated by all Individuals and Companies before they are taxed.
    • Expenditure Method: In this method, National Income is calculated using the formula C + I+ G (X – M) where C is consumer spending, I is investments, G is government spending, M is imports and X is exports.
  • The calculation of Per Capita Income in India is done by the Central Statistical Organization. Other Institutions like RBI also publish their estimates.
  • International organizations like the International Monetary Fund and World Bank also publish these data periodically for most countries of the world.

Per Capita Income of India Previous Years Data

YearNominal GDP per capita ($) at Current PriceNominal GDP per capita ($) at Constant Price

Per Capita Income of Indian States wise List

  • India is a vast and diverse country with differences in the level of regional development. Some regions of India like west coastal states are relatively more developed than the eastern and north-eastern states of India.
  • This is an outcome of the interplay of a number of physical and human factors.
    • Physical factors include terrain, and topography which makes eastern India either hilly and rocky or flood-prone which makes them less accessible.
    • Human factors include corruption, security-related challenges, outmigration of labourers etc.
  • This regional inequality is reflected in the per capita income of different states.
State/ UTPer Capita Income (INR) 2020-21 (based on current price)Per Capita Income ($) 2020-21 (based on current price)
Tamil Nadu₹2,12,174$2,863
Arunachal Pradesh₹1,92,360$2,596
Himachal Pradesh₹1,83,333$2,474
Andhra Pradesh₹1,76,707$2,385
West Bengal₹1,21,267$1,637
Madhya Pradesh₹1,04,894$1,416
Jammu & Kashmir-UT₹1,02,803$1,387
Uttar Pradesh₹61,666$832

Highest Per Capita Income State in India

  • Telangana ranked first among all highest per capita income state Rs 3,08,732 at current prices for the fiscal year 2022-23, according to the Ministry of Statistics and Programme Implementation (MoSPI).
  • List followed by Karnataka with Rs 3,01,673 and Haryana with Rs 2,96,685.

Significance of Per Capita Income of India

  • Measurement of the Per Capita Income of India is important to gauge the level of development in India as a whole as well as within each of its states.
  • Sector-wise calculations of Gross Domestic Product help the government and policymakers to demarcate areas where India or any of its states has a comparative advantage and areas where it is lagging behind. 
  • For the private sector, Per Capita Income is a good indicator of the investment potential of a region. It is reflective of the spending capacity of the population. Thus, one can say that regions with higher Per Capita Income exert higher centripetal forces on capital and human resources.

Shortcomings of Per Capita Income of India

  • Per Capita Income as a measure of development is often criticized because it is a central tendency measure. It fails to capture the inequality prevalent within a region.
  • For example, although Goa has the highest Per Capita Income among the states in India, there are variations in the Per Capita Income of North Goa and South Goa. Per Capita Income as a measure of development is less comprehensive as it fails to capture important aspects of development like health, education, and women empowerment directly.
  • Thus, a country or a region can have a high Per Capita Income, yet Human Development may be low there. This can be observed in Middle East countries like Saudi Arabia.
  • Per Capita Income as a development indicator is often criticized by environmentalists as it promotes unrestricted exploitation of resources even at the expense of the environment. It fails to promote sustainable development.
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