Lok Sabha Question No. 138 (UNSTARRED), answered on 2022-07-18
Subject: Per Capita Income
Ministry: FINANCE
Asked by: Rajiv Ranjan (Lalan) Singh, Kaushalendra Kumar

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF ECONOMIC AFFAIRS

## LOK SABHA

## UNSTARRED QUESTION NO. 138

TO BE ANSWERED ON JULY 18, 2022

## PER CAPITA INCOME

## 138. SHRI RAJIV RANJAN SINGH ALIAS LALAN SINGH: SHRI KAUSHALENDRA KUMAR:

Will the Minister of FINANCE be pleased to state :

- (a) whether there has been a 10-20 per cent decline in per capita income in the country in comparison to the last three years;
- (b) if so, the reasons therefor;
- (c) whether the economic recession in the country is a likely reason for it and if so, the details thereof;
- (d) whether the monthly income of about 10 per cent people is 25 thousand or more whereas about 94 per cent people earn 10 thousand or less per month; and
- (e) if so, the steps being taken by the Government to increase the per capita income?

## MINISTER OF STATE FOR FINANCE (SHRI PANKAJ CHAUDHURY)

- (a) to (c): As per the Provisional Estimates (PE) of National Income 2021-22, Per Capita Gross Domestic Product (GDP) declined in 2020-21 as compared to 2019-20 on account of COVID-19 pandemic induced restrictions.  However,  owing  to  proactive  measures  taken  by  the  government, the  Per  Capita GDP  in 2021-22 has risen sharply as compared to 2020-21. Per capita GDP at current and constant (2011-12) prices for the years 2018-19, 2019-20, 2020-21 and 2021-22 are given in the table below:
- (d):  As  per  The  State  of  Inequality  in  India  Report  written  by  the Institute  for  Competitiveness, extrapolation of the income data from Periodic Labour Force Survey (PLFS) 2019-20 has shown that a monthly salary of Rs. 25,000 is amongst the top 10 per cent of total incomes earned. The share of the top 1 per cent of the population accounts for 6-7 per cent of the total incomes earned, while the top 10 per cent accounts for one-third of all incomes earned.
- (e):  Various  measures  have  been  taken  by  the  Government  to  drive  growth  at  the  macro  level  and complementing it with all-inclusive welfare at the micro level, in turn driving per capita income. Measures like  Goods  and  Services  Tax,  Corporate  tax  reduction,  successful  launch  of  the  Production  Linked Incentive Scheme  (PLIS), Gatishakti Scheme,  National Infrastructure Pipeline, development of renewable  sources  of  energy,  strengthening  of  financial  sector  are  key  developments  that  will  drive economic growth in the coming years.

Table 1: Per capita GDP at current and constant (2011-12) prices for the years 2018-19, 2019-20, 2020-21 and 2021-22

| (In Rs)                            |   2018-19 (3 rd RE) |   2019-20 (2 nd RE) | 2020-21 RE)   |   (1 st |   2021-22 (PE) |
|------------------------------------|---------------------|---------------------|---------------|---------|----------------|
| Per Capita GDP (at 2011-12 prices) |              105448 |              108247 |               |  100032 |         107670 |
| Per Capita GDP (at current prices) |              142424 |              149701 |               |  146087 |         172913 |

Source: NSO, MoSPI