Did the average income of Indians shrink?
The government has changed how India calculates GDP, using a new base year of 2022-23 instead of the older one of 2011-12.
India’s total economy has turned out to be slightly smaller than earlier estimates.
FY26 nominal GDP, which is GDP at current prices, is now estimated at Rs 345 lakh crore compared to Rs 357 lakh crore earlier. That’s a ~3% drop.
This means the average annual income of Indians, which is GDP divided by the population, is now going to be lower at Rs 2.43 lakh from Rs 2.51 lakh.
What's in it for you?
- •The new numbers put an average Indian’s income even lower than what it was, and behind countries such as Bangladesh.
- •This also pushes India’s $5 trillion economy ambitions further down the line. This may affect investment decisions of foreign investors, as well as government spending.
- •The revised GDP calculations are considered more realistic of the current economy and hence will help in better planning.
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