Ground realities of per capita GDP
India is now the 5th largest economy but we have a GDP per capita of only $2612 ranking 125 globally. There is a BIG opportunity here. And things are going to change drastically. Let us understand.
GDP overall allows the nation to spend on big things - infrastructure, defence, etc. It indicates the ability of the NATION to spend on things. It indicates how much weight the decisions of the NATION carry globally.
But what affects people the most, the quality of life issues, are affected by GDP per capita. It indicates the ability of FAMILIES to spend on things.
You can see how families live at various income levels by visiting the Gapminder website. You can select various income levels on the top bar (see pic). When you click on any video, you can click “visit this family” to check out their lifestyle.
You will see that different income classes have different lives. It is not surprising that their phones look different, their shoes look different etc. It is however interesting to note that their hands look different, their hair and their teeth look different. You may also note that people’s presentation - dressing sense, personal grooming, style sense, etc. also improves with their incomes.
It is the same with countries!
If you plot countries on this scale, you will notice very similar things.
We understand that roads, pavements, street lights, open spaces, metro system, public transport and law and order will look different as income grows.
And just like families, the country’s presentation, style, discipline, general etiquette, etc. also improves with income. You will see different kinds of entertainment and enrichment institutions - art galleries, theatres, etc.
India is at the threshold!
India is entering a unique phase of economic growth. It is already the fifth-largest economy and will soon be the third-largest. But India’s per capita GDP is still low at $2612. South American countries have higher per capita GDP.
We have a long way to go. And that means…
We will see some dramatic improvements!
We are going to see some really dramatic improvements as India moves from $2612 to $5000 and then to $10,000.
We have seen the development of the new Parliament building. Expect more of this. We will see public institutions get better infrastructure. Expect new tastefully done, functionally-efficient, culturally rooted public infrastructure.
Expect to see libraries, museums, art galleries. We will also history come alive in all glory in palaces, museums and public places.
We will see town squares, open-air public venues, tree-lined streets, lakes and water bodies, and much more. We are already seeing better river-fronts, but expect public water transport and some interesting developments there.
Also we will soon do away with that LED/Laser garishness and we will see some tasteful lighting.
We will see a better sense of style emerge. A modern Indian aesthetic will emerge and we will see it as much in traffic islands, parks or metro stations, as in people’s clothes and dressing styles.
People will become fitter and more healthy. Governments too will become more leaner and efficient! (Yes, it does happen).
We will have cleaner air, water and environment and more cooler cities.
It surely will seem like it’s improvement of everything, everywhere, all at once! Let the ride begin.
Note:
In PPP terms, India’s per capita GDP is at $8400. The ranking on nominal per capita and PPP per capita are slightly different, but the argument still holds.