India to take five years to almost achieve an income feat that earlier took 75 years: Nirmala Sitharaman

Finance Minister Nirmala Sitharaman expressed optimism about India’s economic growth, projecting that per capita income will increase by $2,000 over the next five years.

During her address at the Kautilya Economic Conclave, she highlighted that it took 75 years to reach a per capita income of $2,730, but the next significant jump is expected to occur much more rapidly.

Sitharaman emphasised the role of consumption, which comprises over 60% of India’s GDP, pointing out that nearly 43% of the population is under 24 years old. This demographic advantage is seen as a driver for organic consumption growth.

She also discussed the strength of India’s financial system, claiming it is now comparable to global markets, and underscored the importance of nurturing the youth to ensure they are both mentally and physically strong. Additionally, she drew a comparison to China’s growth, noting that the latter benefitted from a favorable global trade and investment climate.

Sitharaman’s message was one of confidence in India’s capacity for sustained economic growth, fueled by innovation and a robust financial framework.