The annual growth rate for Fiscal 1991-2005 was approximately 12% and this increased to approximately 14%
for Fiscal 2020. While in the short term, consumption will suffer a setback, it is expected to reach to approximately
US$ 2.27 Tn by Fiscal 2025.

Per Capita Income Growth

India's GDP Per Capita (%) (Current Prices)

228,222

       
 

148,726, 152,936,
140,256 137,913

  

127,727
116,207
105,117

1990 2000 2010 2015 2016 2017 2018 2019 2020 2021P 2022P 2023P 2024P 2025P

Source: IMF projections
Note: Year indicates CY; Numbers for 2021-2025 are Provisional

The per capita income of India has been showing an increasing trend since 2012; growing at a healthy CAGR of
approximately 10%, the per capita income reached 21,48,726 in 2019. Given the impact of COVID-19, it is
projected to decrease to 21,37,913 in 2020. However, it is expected to bounce back to 21,52,936 in the subsequent
year and continue its growth journey at a CAGR of 10.5%.

Growth Drivers

Demographic Profile of India

Young population

India has one of the youngest populations globally compared to other leading economies. The total population of
India is 1394 million for Fiscal 2021. The median age in India is estimated to be 28.1 years in 2021 as compared
to 38.1 years and 37.4 years in the United States and China, respectively, and is expected to remain under 30 years
until 2030.

The size of India's young population is contributing to a decline in the dependence ratio (the ratio of dependent

population size compared to the working-age population size (15 to 64 years of age). This trend is expected to
lead to rising income levels per household as well as higher levels of discretionary expenditure.

 

 

 

Age Dependency Ratio
Age-wise Break-up of Age-wise Break-up of Dependency Ratio
Male Population 2011 Female Population 2011 (% of working-age population)
70+
17% 79% 7596 72%
55-70 64% sor 9
‘S34 52% 51% 50% 50% 49%
35-44
25-34
15-24
0-14 14% 1960 1970 1980 1990 2000 2010 2016 2017 2018 2019 2020

  

 

 

Source: Census of India 2011, World Bank, MOSPI
Note: Years mentioned are Financial Year; Age wise break up of population not adding up to 100% due to rounding off

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