India’s per capita GDP at current prices is estimated at ₹1,96,716, compared to ₹71,609 in FY12, implying a compounded annual growth rate (CAGR) of 10.6 per cent, according to State Bank of India’s economic research report ‘Ecowrap’.

The report credits the growth in per capita GDP to the government’s efforts to ensure quality of life for all citizens and halting the leakage of benefits through DBT (direct benefit transfer).

SBI’s economic research department estimated the jump in per capita GDP in FY23 at ₹25,218 at current prices.

There is also good news on private final consumption expenditure (PFCE), which is expected to increase to ₹164 lakh crore in FY23, with the yearly growth moderating to 14.8 per cent, the report said.

“Historical data shows that it (PFCE) declined at current price for the first time in FY21 in a decade. Prior to Covid it continued to grow at double digits (average of 12 per cent) though the pace of increase has been on the decline since FY18 and it turned negative in FY21,” said Soumya Kanti Ghosh, Group Chief Economic Adviser, SBI.

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Ghosh noted that the growth rate in PFCE has moved back to double digits post Covid, indicating positive growth momentum.

Per capita PFCE also shows improvement of over 10 per cent year-on-year to ₹63,595 crore in FY22, after dipping to ₹57,728 crore in FY21.

Meanwhile, gross capital formation (GCF) in the agriculture, manufacturing, electricity, trade and hotels, real estate, public administration and other services sectors registered a new peak in FY22 after dipping during the pandemic, as per the report.

The GCF to gross output ratio, or the plough back of funds for creation of fresh capacity, shows no specific trend, except in the case of public administration, where the ratio attained a fresh peak in FY22 owing to the emphasis on capital expenditure in recent budgets, it added.

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