Per Capita Income of India

Per Capita Income (PCI) estimates the standard of living of the people residing in India. PCI, also called income per person, at current prices is the most relevant parameter to study the standard of living. Per Capita Income of India at current prices is at Rs. 1,92,774 during the fiscal year 2024-25.

Calculation of Per Capita Income

Per Capita Income of a nation or income per person per year is calculated when the Net National Product (NNP) is divided by the total population of the nation.

• PCI at constant prices during a particular year = NNP at constant prices during that particular year / Projected mid year population (estimated as on 1st October)
  
  
• PCI at current prices during a particular year = NNP at current prices during that year / Projected mid year population (estimated as on 1st October)
  
  

Personal and Disposable Income

• Personal Income: Personal Income represents the gross amount of money that is brought into a household from all the sources of income before any taxes and deductions. It also includes any Government benefits that are received through welfare schemes.
  
  
• Disposable Income: It is the money remaining after taxes and non-tax government fees are deducted from Personal Income. This is the amount of money that is left with the individuals to spend or to save.
  
  

Significance of Standard of Living

• The standard of living in India exhibits a huge disparity and varies from one state to another state. We can see widespread poverty in rural India, where the basic amenities like medical care are least available or unavailable, whereas top cities have world class medical facilities.
  
  
• According to World Bank figures, a third of the total global poor people reside in India.
  
  
• Despite the Indian economy is steady in its growth path over the last few decades, the growth is not even in nature when different geographical areas, social groups and urban & rural areas are compared. The gap between the rich and the poor is increasing day by day.