India’s per capita Gross Domestic Product (GDP) at current prices is projected to reach ₹2.35 lakh in the financial year 2024-25 (FY25), supported by improved policy-making and the efficient distribution of benefits through the Direct Benefit Transfer (DBT) system, according to a report by the State Bank of India (SBI).
The report highlights a notable surge in per capita GDP over the last two years, stating, “Interestingly, in the last two fiscals, the per capita GDP has jumped by more than ₹40,000 at current prices.”
A key driver of economic expansion has been private consumption, particularly in healthcare, education, and hospitality sectors. The report indicates that per capita private consumption has grown at a faster rate of 6.6 per cent in FY25, compared to 4.6 per cent in the previous financial year.
However, capital formation—representing investments in infrastructure and businesses—is expected to grow at a slower pace of 6.1 per cent, down from 8.8 per cent recorded in FY24.
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On the trade front, the depreciation of the rupee has provided a fillip to export growth in rupee terms, which expanded by 7.1 per cent. Meanwhile, a slowdown in capital formation and lower commodity prices resulted in a decline in imports.
SBI noted, “The weakening of the rupee boosted exports growth in rupee terms at 7.1 per cent, while a slowdown in capital formation and commodity prices resulted in degrowth in imports.”
India’s overall economic performance witnessed an uptick in the third quarter (Q3) of FY25, with GDP expanding by 6.2 per cent, as per data released by the Ministry of Statistics and Programme Implementation.
This marked a recovery from the seven-quarter low of 5.6 per cent recorded in the second quarter (Q2). The Gross Value Added (GVA) also saw an increase, rising to 6.2 per cent in Q3 from 5.8 per cent in Q2, bolstered by strong growth in the agriculture and industrial sectors, particularly manufacturing.
Buoyed by these trends, the SBI report has revised India’s full-year GDP growth estimate for FY25 to 6.5 per cent, up from the 6.4 per cent projected in the First Advance Estimates (FAE) published on 7 January.
The report suggests that India’s economic momentum remains robust, fuelled by heightened consumption, policy interventions, and industrial expansion, despite challenges such as a slowdown in capital formation.
Also read: India needs stronger tax growth to sustain economy
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