According to the World Bank Report, India’s GDP crossed the $2-Trillion mark in 2014 and at present stands at $2.067 Trillion. India is among the world the fastest growing economies this year. After taking 60 years to reach the $1-trillion mark, India added the next trillion in just seven years. 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’s growth rate, at 7.4 per cent in 2014, makes it the fastest growing major economy along with China’s, which is a whopping $10.4 trillion in size. Despite its increase in per capita gross national income (GNI), India has remained in the ‘lower middle income’ category ($1,046-$4,125).

China, however, with a per capita GNI of $7,380 and an average annual growth in this parameter of 15.6 per cent, will leave the ‘upper middle income’ category by 2018 to become a ‘high income’ country like the U.S., the U.K., Germany and Japan. It will take India till 2039 to reach that level, at the assumed growth rate.

Banking Terms

Gross National Income – It measures the total value added by all citizens of a country, whether in India or abroad.

Gross domestic product (GDP) – It is the total value of a country’s production and services within its boundary, whether by its nationals or foreigners.