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Indian economy's worth expected to rise to $1.7 trn

India's per capita income is projected to soar by 10.4 per cent to Rs 74,920 in 2013-14 as the country becomes a $1.7 trillion economy.

twitter-logo PTI   New Delhi     Last Updated: February 7, 2014  | 21:46 IST
Indian economy's worth expected to rise to $1.7 trn

India's per capita income is projected to soar by 10.4 per cent to Rs 74,920 in 2013-14 as the country becomes a $1.7 trillion economy.

Per capita income is calculated by evenly dividing the national income by the country's population.

However, the increase in per capita income would be only 2.8 per cent in 2013-14 if it is calculated on the basis of 2004-05 prices.

Per capita income (at 2004-05 prices) would be Rs 39,961 in 2013-14, against Rs 38,856 in the previous fiscal, according to the latest data on national income.

The size of the economy at current prices is projected to rise to Rs 105.39 lakh crore ($1.7 trillion)at the end of 2013-14 fiscal, up 12.26 per cent from Rs 93.88 lakh crore in FY 2012-13.

Based on 2004-05 prices, the Indian economy is projected to expand by 4.9 per cent in the 2013-14 fiscal. This is higher than 4.5 per cent growth in 2012-13.

The country's population is expected to increase to 123 crore by the end of March 2014, from 121.7 crore in March 2013.

According to the CSO's advance estimates, growth in electricity, gas and water production is likely to improve to 6 per cent in 2013-14 from 2.3 per cent in 2012-13.

The trade, hotel, transport and communication sectors are projected to grow by 3.5 per cent, as against 5.1 per cent in the previous financial year.

Community social and personal services growth would be better at 7.4 per cent, compared with 5.3 per cent previously.

The CSO releases advance GDP estimates before the end of the financial year to enable the government to formulate various estimates for inclusion in the Budget.

Per capita income in real terms (at 2004-05 prices) during 2013-14 is likely to attain a level of Rs 39,961 as compared to the first revised estimate for the year 2012-13 of Rs 38,856.

The growth rate in per capita income is estimated at 2.8 per cent as against the previous year's estimate of 2.1 per cent, CSO said.

Per capita income at current prices during 2013-14 is estimated to be Rs 74,920 compared with Rs 67,839 during 2012-13, a rise of 10.4 per cent.

Gross Fixed Capital Formation (GFCF), an indicator of investment, is forecast at Rs 32.2 lakh crore at current prices as against Rs 30.7 lakh crore in 2012-13.

At constant (2004-05) prices, GFCF is estimated at Rs 20.1 lakh crore in 2013-14 as against Rs 20.0 lakh crore.

In terms of GDP at market prices, the rates of GFCF at current and constant (2004-05) prices during 2013-14 are estimated at 28.5 per cent and 32.5 per cent, respectively, as against the corresponding rates of 30.4 per cent and 33.9 per cent, respectively in 2012-13.

The rate of expenditure on valuables at current prices has gone down from 2.6 per cent in 2012-13 to 2.1 per cent in 2013-14, the statement added.

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