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Friday, 16 March 2012

India 4th largest economy but per capita income still low: Survey


India 4th largest economy but per capita income still low: Survey

New Delhi, Mar 15 (PTI): India has become the fourth largest economy in the world because of strong economic growth but still has a low per capita income, the Economic Survey for 2011-12 said Thursday.
"India has emerged as the fourth largest economy globally with a high growth rate and has improved its global ranking in terms of per capita income. Yet, the fact remains that its per capita income continues to be quite low," it said.
"India has moved up the ranks, but is still the poorest among the G-20," the Survey added.
India's per capita income was USD 1,527 in 2011, it said.
"...this is perhaps the most visible challenge. Nevertheless, India has a diverse set of factors, domestic as well as external, that could drive growth well into the future," the Survey said.
Between 1980 and 2010, India achieved a growth of 6.2 per cent, while the world as a whole registered a growth rate of 3.3 per cent. As a result, India's share in global GDP more than doubled from 2.5 per cent in 1980 to 5.5 per cent in 2010, it said.
Consequently, India's rank in per capita GDP showed an improvement from 117 in 1990 to 101 in 2000 and further to 94 in 2009. China, however, improved its rank from 127 to 74 during the same period.
The Survey said any slowdown in the Eurozone, which accounts for 19 per cent of the global GDP, could impact the Indian economy. The International Monetary Fund (IMF) has forecast that the Eurozone is likely to go through a mild recession in 2012.
Noteworthy
 March inflation projected at 6.5-7 per cent.
 Growth to be 6.9 per cent for 2011-12.
 Economic growth in 2012-13 to be 7.6 per cent, plus or minus 0.25 per cent.