India is currently the fifth-largest economy in the world at the basis of aggregate production which is an accomplishment stands out on its own. However, the IMF ranks India 142 out of 197 nations in terms of per capita income, and there is a need to establish a clear blueprint for India’s future growth after COVID-19 and following the Russia-Ukraine war.

Former RBI Governor C. Rangarajan remarked on Saturday that even when India achieves its short-term aspirational target of attaining a GDP of 5 Lakh Crore USD, it will still be regarded as a middle-income nation with a per capita income of INR 2,86,802.30.

It is assumed that it will take another two years to get to the level of an upper middle-income country and that it will take more than 20 years of strong growth of between 8% and 9% to get to the level of a developed country, where the per capita income must be at least INR 10,90,790.44.  Rangarajan further added that in order to achieve a sustainable growth rate of 8% to 9% over a period of six to seven years, the growth rate must first be increased to 7% initially. India has demonstrated in the past that it is capable of achieving this level of growth.

Policymakers must put increasing the economy’s growth rate as their top priority right away. An excellent short-term aspirational objective is to have a $5 Lakh Crore economy. This will require a minimum of five years of consistently high growth of 9%. So, we have a long way to go.

In order to improve the per capita income of the Indian Economy, there are some suggestions to raise the National Income in India.

• The government should embrace a new agricultural strategy to increase agricultural production, including the use of superior High Yield Variety seeds, fertilizers, pesticides, better tools and equipment, scientific crop rotation, and other cutting-edge cultivation techniques. It is so because India’s agriculture industry makes up a significant portion of the country’s overall income.
• The industrial sector of the nation should be significantly developed in order to diversify the sectoral contribution to national revenue.
• The capital-output ratio has to be lowered to a tolerable level.
• Positive actions should be implemented to increase the country’s pace of growth in its overseas commerce.
• The government should significantly liberalize the economy by removing pointless barriers and impediments to development in order to promote the various sectors of the nation. The production of several productive sectors would increase as a result.
• In addition, it can be suggested that raising the rate of savings and investments, development of infrastructures, utilization of natural resources to the utmost level and removal of inequality in the distribution of income and wealth may also help in the increase in per capita income of the nation.