The Aryavarth Express
Agency (New Delhi): Over the past decade, India has made significant strides in economic performance, particularly in terms of per capita GDP growth, according to analysis based on International Monetary Fund (IMF) data. This growth marks a significant turnaround from the trends observed before 2014, positioning India as a key player among the world’s top five economies.
In 2004, India’s per capita GDP stood at $635, approximately 35% of the average per capita GDP of $1,790 among 150 countries classified as “emerging market and developing economies” by the IMF. This group includes nations like China, Russia, and Brazil, as well as countries in South America, Africa, the Middle East, and parts of Eastern Europe. By 2014, India’s relative economic standing had dipped to 30% of the peer average, indicating a worsening position compared to its counterparts.
However, this trajectory changed post-2014, with India’s relative economic performance improving to 37% in 2019 and further to 42% in 2024, with a per capita GDP of $2,850 against a peer average of $6,770. This recovery and growth have narrowed the gap with its peer countries, showcasing a robust economic upturn.
India’s economic size compared to China also reflects this resurgence. In 2004, India’s economy was 37% the size of China’s, a ratio that fell to 19% by 2014 due to China’s rapid growth. Recent trends have been more favorable for India, with its economic size relative to China increasing to 22%, bolstered by faster growth rates than the Asian giant.
Currently positioned as the fastest-growing major economy globally, India is on track to become the third-largest economy, overtaking both Germany and Japan. This growth is not just a reflection of increased economic output but also of enhanced living standards across the country, as indicated by rising per capita GDP figures. These developments underscore India’s strengthening macroeconomic fundamentals and its rising prominence on the global economic stage.
