India per capita income seen $1k '07/08: FM

Written by Agencies | Mumbai, November 5: | Updated: Nov 5 2007, 21:13pm hrs
India's per capita income is expected to rise to $1,000 by the end of the 2007/08 fiscal year on the back of a 9 percent economic growth, Finance Minister Palaniappan Chidambaram said on Monday.

Per capita income stood at $797 in 2006/07, according to data from the central bank's Web site: www.rbi.org.in, nearly double from $460 in 2000/01 thanks to robust economic growth.

"Per capita income will be $1,000 at current exchange rates if we grow at 9 percent," Chidambaram told a gathering.

In the fiscal year ended March 2007, India's economy expanded 9.4 percent -- one of the fastest growth rates in the world. The growth has averaged 8.6 percent in the past four years.

"Per capital will double every nine years. By 2016/17, per capita will be $2,000 if we grow at 9 percent and in another nine years, by 2025, per capita would be $4,000 and that will make us a middle-income country," Chidambaram said.

Chidambaram said the government would devise ways to utilise its rising foreign exchange reserves to build creaky infrastructure.

India estimates it needs $475 billion between 2007 and 2012 to upgrade its roads, expand and modernise its ports, improve rail services and boost power generation.

India's foreign exchange reserves rose to $262 billion at end-October placing it among the top five in Asia.