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.