‘Economic model should ensure better per capita income’

Lucknow: Indian economy is likely to touch the USD 5 trillion mark in the next three years and USD 50 trillion by 2050.
But, what do these figures mean for the common man who’s worried about his rising monthly expenditure without much change in household income?
That’s the perspective that needs to factor in for equitable growth. These views took centerstage on the first day of the 106th Indian Economic Association (IEA) Conference at the Giri Institute of Development Studies (GIDS) on Wednesday.
The three-day conference began with a clarion call to the working economists to step up their game and devise a workable roadmap to increase the per capita income of the households. Noted economists and academicians from across the country pressed upon the need for an economic model that doesn’t just focus on GDP growth but also prepares a blueprint that ensures that the growth in overall production translates into a tangible improvement in household income and human development indices.
“If we do not take a vow to develop economic models that factor in subtleties of micro scenarios, our growth will not be equitable and sustainable,” argued Professor Charan Singh, CEO of the Foundation for Economic Growth and Welfare.
Putting things into perspective, economists pointed out that regardless of the increase in the size of the economy the overall per capita income of the country has been a matter of concern. In terms of GDP, India is placed at the fifth position. However, in terms of per capita income, it is at 139. Per capita income is a measure of the average income earned per person in a given area in a specified year.
National Bank for Agriculture and Rural Development (NABARD) chief general manager SK Dora said, “Indian economy has been growing impressively and we will be overtaking Germany and Japan in terms of GDP. That’s a positive sign for the country.”
Reserve Bank of India (RBI) Lucknow’s regional director Dr Balu Kenchappa stressed that for equitable growth there needs to be an uptick in the credit.
“For overall growth, we need to increase the size of GDP. To increase the GDP, money has to be generated, distributed, and circulated. That’s where credit steps in. A healthy growth in credit will drive economic growth,” Kenchappa added.