India’s per capita income is forecast to rise around 70% by 2030 and reach $4,000 from the current $2,450 level, according to a report by Standard Chartered Bank.

The rise in income will help India to become a middle-income economy with a GDP of $6 trillion, with around half stemming from household consumption, the report added.

Furthermore, India’s per capita GDP rose from $460 in 2001 to $1,413 in 2011 and $2,150 in 2021.

The main factor driving substantial economic growth is external trade, which is forecast to almost double to $2.1 trillion by 2030, Mint reports. This would represent a significant rise from the $1.2 trillion registered in fiscal 2030 when GDP was $3.5 trillion. 

In addition, the report shows the second key growth contributor will be household consumption, which is forecast to reach $3.4 trillion by fiscal 2030. Whereas in fiscal 2030, household consumption in India stood at $2.1 trillion, representing around 57% of GDP at that time.

The country’s Prime Minister, Narendra Modi, has pledged that the economy will be among the top three during his next term in office and will hit $5 trillion. As it stands, Japan is in third place after the US and China.

Telangana is Currently in the top per capita income rankings with 2,75,443 Rupees ($3,360). This is followed by Karnataka with ₹2,65,623, Tamil Nadu with ₹2,41,131, Kerala with ₹2,30,601, and Andhra Pradesh with ₹2,07,771, the Mint report adds.

The key trigger for India’s economic growth will remain the rising proportion of the working-age population. Back in 2020, the share of working-age people in the country made up 64.2% of the population, which is forecast to increase to 64.8% within the next few years.

That said, there may be a slight fall to 63.6% by 2040 and 61.1% by 2050, yet the working-age population is still set to play a vital part in shaping India’s economic development.