Context:
Delhi’s per capita income in 2023-24, at ₹4,61,910, was the third highest in the country after Goa and Sikkim, according to the latest statistical handbook.
Per Capita Income
Per capita income is the amount of money on average earned by a person within a given space over a period of time. It is usually calculated by taking the total income within an area divided by the total population within the same area.
- Per capita income is used to determine the quality of life and the standard of living for a population. This usually is done using population surveys such as the American Community Survey.
- Limitations
- It does not account for inflation, which makes economic growth overstated sometimes.
- It fails to account for cost of living differences between countries.
- A small number of rich people may increase a country’s per capita income but, meanwhile, the remaining population sees no changes.
- Inclusive Growth
- Inclusive growth is a concept that aims to create a society that is free, equal, and wealthy, while also reducing poverty and preserving economic freedoms.
- Per Capita Income of India
- 10,030 PPP dollars (2023)
