Income (Per Capita)
GDP PER CAPITA: 1,492 (US$)
International Monetary Fund 2012
International Monetary Fund 2012
India’s income per capita ranks at 149 in the world. This country is also home to the largest number of poor people worldwide. There are at least 300 million people living in extreme poverty in India, this means they are living on less than a dollar a day. One of the richest states in India, Gujarat, has a higher level of malnutrition than in sub-Saharan Africa. A UN study in 2010 recorded one maternal death at child birth every ten minutes in India, giving the country a maternal mortality rate higher than that of Sudan, Ethiopia and Bangladesh. How is this true? How could a well-established middle income country in terms of GDP like India have so many poor people? The levels of income disparity are rising with the growth in global inequality.
Like in other countries, cities provide a better standard of living than rural areas. Towns and cities account for more than two thirds of the Indian GDP, even though less than a third of the population live in them. In India, urban areas have seen a much higher growth rate compared to rural areas. Rural areas contribute to only one-third of the national income even though more than three-fourths of the population lives in these areas. One of the main reasons for India’s poor performance in terms of income within these rural areas is because of their dependence on agriculture. An extremely slow rate of growth in the agriculture sector of the Indian economy has serious implications for the rural-urban divide, both in terms of income and GDP. Some estimates say that the average income of a person living in an urban area may be up to four times higher than that of a person living in a rural area.
For a nation to be so large in size brings strengths but also has its share of weaknesses. India is an example of this. Far flung areas, extremely large population and difficult terrain makes matters even more complex for Indian citizens. Income gaps that are not only massive but also widening are a result of scattered development and industrialization. This means that a large majority of the Indian population has little to no disposable income. Furthermore, many Indians do not acquire enough money to even provide the basic necessities to support themselves or their families.
Like in other countries, cities provide a better standard of living than rural areas. Towns and cities account for more than two thirds of the Indian GDP, even though less than a third of the population live in them. In India, urban areas have seen a much higher growth rate compared to rural areas. Rural areas contribute to only one-third of the national income even though more than three-fourths of the population lives in these areas. One of the main reasons for India’s poor performance in terms of income within these rural areas is because of their dependence on agriculture. An extremely slow rate of growth in the agriculture sector of the Indian economy has serious implications for the rural-urban divide, both in terms of income and GDP. Some estimates say that the average income of a person living in an urban area may be up to four times higher than that of a person living in a rural area.
For a nation to be so large in size brings strengths but also has its share of weaknesses. India is an example of this. Far flung areas, extremely large population and difficult terrain makes matters even more complex for Indian citizens. Income gaps that are not only massive but also widening are a result of scattered development and industrialization. This means that a large majority of the Indian population has little to no disposable income. Furthermore, many Indians do not acquire enough money to even provide the basic necessities to support themselves or their families.
Link(s):
http://timesofindia.indiatimes.com/business/india-business/Indias-per-capita-income-rises-to-Rs-5729-per-month/articleshow/18387279.cms
http://english.cntv.cn/program/bizasia/20100702/101398.shtml
http://www.bbc.co.uk/news/world-asia-india-16064321
http://www.washingtonpost.com/blogs/worldviews/wp/2013/05/16/report-income-inequality-rising-in-most-developed-countries/
http://timesofindia.indiatimes.com/business/india-business/Indias-per-capita-income-rises-to-Rs-5729-per-month/articleshow/18387279.cms
http://english.cntv.cn/program/bizasia/20100702/101398.shtml
http://www.bbc.co.uk/news/world-asia-india-16064321
http://www.washingtonpost.com/blogs/worldviews/wp/2013/05/16/report-income-inequality-rising-in-most-developed-countries/