The Hindu Business Line : Low per capita income

The per capita income in India was 2 pounds a year, according to an editorial in The Hindu, dated January 14, 1890. Our income was “1/20th of that of England and Austria, 1/14 of that of the US and Canada, less than 1/4th of that of Russia and ‘only a third of that of even the countries of South America.’” India’s savings were also low, at 4 annas per head per year, or 1/30th of what the UK could boast of, or 1/42 of the US’.

The charge of ‘extravagant living’ could not be laid at the door of the Indian, the write-up protested, because “his cost of living is only 1/15 of that of a native of the UK, 1/10 of that of the US, France, Belgium and Holland and 1/4 of that of Russia.” Despite a phenomenal rate of growth, India’s large population has a per capita income of $2,659, measured by PPP (purchasing power parity), and $978, measured in nominal terms, says http://en.wikipedia.org. “The World Bank classifies India as a low-income economy.” The US’ per capita income is more than $43,000.
Wasteful illumination

In February 1890, the Bombay Municipality witnessed an interesting debate, about which a correspondent reported thus: “The Municipal Standing Committee were divided in their opinion as to the contribution towards public illumination in honour of Prince Albert’s visit, the expenses in the illumination being generally considered a waste of public monies.” Wonder if such discussions happen these days, in the local body meetings.

D. MURALI

K. RAJENDRABABU

(Inputs from The Hindu Archives)

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