India is now a $2-trillion economy

India is now a $2-trillion economy

According to a recently released World Bank report, India’s GDP has crossed the $2-trillion mark in 2014 and at present stands at $2.067 trillion. After taking 60 years to reach the $1-trillion mark, India has added the next trillion in just seven years.

What else the report says?

• Going by income, India is still in the lower middle income category.
• India’s gross national income per person has risen to $1,610, which converts to Rs 1,01,430 by present exchange rate.
• India is among the world the fastest growing economies this year.
• Despite its increase in per capita gross national income (GNI), India has remained in the ‘lower middle income’ category ($1,046-$4,125).
• The report also shows that India would become an ‘upper middle income’ country ($4,126-$12,735) in 2026. This will put it in the category China occupies now. But, it will take India till 2039 to reach the ‘upper middle income’ level, at the assumed growth rate.

The World Bank’s data on gross national income per capita show Bangladesh, Kenya, Myanmar, Tajikistan, Mongolia, Paraguay, Argentina, Hungary, the Seychelles and Venezuela have shifted their income categories for the better. For example, Bangladesh, Kenya, Myanmar, and Tajikistan are now ‘middle income’ countries from being ‘low income’ nations.

GNI (Gross national income) is the sum of value added by all resident producers plus any product taxes (less subsidies) not included in the valuation of output plus net receipts of primary income (compensation of employees and property income) from abroad.