Per capita income rises by 10.5%

The average income of Indians has grown by 10.5% to Rs 44,345 in 2009-10 against Rs 40,141 in 2009-09, at the current price. The average income at the current price, which is also termed as per capita income, rose higher than GDP at fixed price because of inflation, which almost get added to the economic growth rate at fixed price (2004-05 price). The per capita income in the latest estimate was slightly higher than Rs 43,749 calculated by the Central Statistical Organisation (CSO) in its advance estimate for 2009-10 in February. However, per capita income at fixed price grew by 5.6% in 2009-10, which is a better way of comparison and broadly factors in inflation. Per capita income stood at Rs 33,588 in 2009-10 against Rs 31,821 in the previous financial year, according to national income data released on Monday. Per capital income means income of each Indian, assuming national income is evenly divided among the country’s population of 117 crore. At market price, size of the India economy rose to Rs 62,31,171 crore in 2009-10.