Lok Sabha Question No. 1216 (UNSTARRED), answered on 2018-02-09
Subject: Per Capita GDP
Ministry: FINANCE
Asked by: POONAM  MAHAJAN

## Government of India Ministry of Finance

## Department of Economic Affairs

## LOK SABHA

## UNSTARRED QUESTION NO. 1216

TO BE ANSWERED ON FEBRUARY 9, 2018

## PER CAPITA GDP

1216.  SHRIMATI POONAM MAHAJAN:

Will the Minister of FINANCE be pleased to state:

- (a) the current per capita GDP of the country as compared to G20 nations;
- (b) whether the Government is aware of the fact that China's per capita GDP is more than India's per capita GDP, if so, the details thereof;
- (c) whether the Government has adopted a target to substantially improve the country's per capita GDP; and
- (d) if  so,  the  details  thereof  including  the  action  plan  of  the  Government  for  effecting  an exponential increase of per capita GDP?

## ANSWER

MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI PON. RADHAKRISHNAN)

- (a) and (b) As per World Economic Outlook (WEO) October 2017 database, per capita GDP of G-20 nations at current international dollar (purchasing power parity) for the year 2016 are given in the table below.
- (c)  and  (d)  The  agenda  of  promoting  economic  growth  has  been  the  utmost  priority  of  the government, which in turn is expected to improve per capita GDP. The Government of India has  taken  various  initiatives  to  boost  the  growth  of  the  economy.  Major  initiatives  in  this

| Per Capita GDP at current international dollar (PPP) in 2016   | Per Capita GDP at current international dollar (PPP) in 2016   | Per Capita GDP at current international dollar (PPP) in 2016   | Per Capita GDP at current international dollar (PPP) in 2016   |
|----------------------------------------------------------------|----------------------------------------------------------------|----------------------------------------------------------------|----------------------------------------------------------------|
| Country                                                        | Value                                                          | Country                                                        | Value                                                          |
| Argentina*                                                     | 20,053                                                         | Japan                                                          | 41,220                                                         |
| Australia*                                                     | 48,712                                                         | Korea*                                                         | 37,730                                                         |
| Brazil                                                         | 15,238                                                         | Mexico*                                                        | 18,935                                                         |
| Canada                                                         | 46,441                                                         | Russia                                                         | 26,926                                                         |
| China                                                          | 15,395                                                         | Saudi Arabia*                                                  | 55,331                                                         |
| France                                                         | 42,336                                                         | South Africa                                                   | 13,291                                                         |
| Germany                                                        | 48,449                                                         | Turkey                                                         | 24,986                                                         |
| India*                                                         | 6,694                                                          | United Kingdom                                                 | 42,421                                                         |
| Indonesia                                                      | 11,717                                                         | United States                                                  | 57,608                                                         |
| Italy                                                          | 36,823                                                         | European Union                                                 | 39,371                                                         |

Source: WEO October 2017 database

Note: PPP: Purchasing Power Parity, * : IMF estimates

direction, inter-alia ,  include;  fillip  to  manufacturing,  measures  to  improve  the  ease  of  doing business, concrete measures for transport and power sectors as well as other urban and rural infrastructure,  comprehensive  reforms  in  the  foreign  direct  investment  policy  and  special package  for  textile  industry.  The  introduction  of  the  Goods  and  Services  Tax  (GST)  has provided a significant opportunity to improve growth momentum by reducing barriers to trade, business and related economic activities. The Insolvency and Bankruptcy Code was enacted to  achieve  insolvency  resolution  in  a  time  bound  manner. The  government has launched a phased program for bank recapitalization. This entails infusion of capital to the public sector banks, which is expected to encourage banks to enhance lending. For highways development the Bharatmala Pariyojana has been launched.

The  Budget  2018-19  also  included  various  measures  to  provide  impetus  to  the  economic growth which, among others, include major push to infrastructure via higher allocation to rail & road  sector,  expansion  of  airport  capacity,  reduced  corporate  tax  rate  of  25  per  cent  for companies with turnover up to Rs. 250 crore which is expected to help 99 per cent of Micro, Small  and  Medium  Enterprises  (MSMEs)  filing  their  returns,  etc.  The  Budget  particularly focused on strengthening agriculture and rural economy via emphasis on rural housing, rural infrastructure, keeping Minimum Support Prices (MSP) of unannounced kharif crops at least one and half times of their production cost; and emphasis on job creation. Government had also announced various measures in the Budget 2017-18 to promote growth in the economy which,  among  others,  includes  push  to  infrastructure  development  by  giving  infrastructure status to affordable housing, higher allocation to highway construction, and focus on coastal connectivity.

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