India's per capita GDP jumps by over Rs 40,000 in two years: SBI Report

New Delhi [India], March 1 (ANI): India's per capita GDP at current prices is estimated to reach Rs 2.35 lakh in the financial year 2024-25 (FY25), driven by better policy-making and improved distribution of benefits through the Direct Benefit Transfer (DBT) system, according to a report by the State Bank of India (SBI).

The report also highlighted that the per capita GDP has increased by more than Rs 40,000 over the last two financial years.

It said "Interestingly, in the last two fiscals, the per capita GDP has jumped by more than Rs 40,000 at current prices".

The report noted that private consumption has been a key driver of economic growth, particularly in areas such as healthcare, education, and hotel services.

As a result, per capita private consumption grew at a faster pace of 6.6 per cent in FY25, compared to 4.6 per cent in the previous year. However, capital formation, which reflects investments in infrastructure and businesses, is expected to grow at 6.1 per cent--lower than the 8.8 per cent recorded in FY24.

On the trade front, the report mentioned that the weakening of the rupee has boosted export growth in rupee terms by 7.1 per cent. Meanwhile, a slowdown in capital formation and lower commodity prices have led to a decline in imports.

SBI said "The weakening of rupee boosted the exports growth in rupee terms at 7.1 per cent and slowdown in capital formation and commodity prices resulted in degrowth in imports".

India's economic growth picked up in the third quarter (Q3) of FY25, with the Gross Domestic Product (GDP) expanding by 6.2 per cent as per the data by Ministry of Statistics and Programme Implementation.

This marks an improvement from the seven-quarter low of 5.6 per cent growth recorded in the second quarter (Q2).

Similarly, the Gross Value Added (GVA) rose by 6.2 per cent in Q3, compared to 5.8 per cent in Q2, supported by strong performance in the agriculture and industrial sectors, particularly manufacturing.

With these positive trends, the SBI report has also revised India's full-year GDP growth estimate for FY25 to 6.5 per cent, up from the earlier estimate of 6.4 per cent in the First Advance Estimates (FAE) published on January 7.

The report suggested that India's economic momentum remains strong, supported by increased consumption, policy measures, and industrial growth, despite challenges such as slower capital formation. (ANI)

(The story has come from a syndicated feed and has not been edited by the Tribune Staff.)