GDP per capita explains how much people profit from their country's economy.
India's GDP per capita in constant 2010 prices rose from $309 in 1991 to $1,598 in
2015.
Indeed the Indian economy presents a picture of a turnaround. A new government
leased 20 tonnes of gold out of its stock to the State Bank of India and allowed the
Reserve Bank of India (RBI) to ship 47 tonnes of gold to the Bank of England in July
1991 to raise $600 million. The government then embarked on a new economic
policy, including privatization, liberalization, and globalization. The economic
reforms began in July 1991, and the mid-1990s restored macroeconomic balance.
India's GDP grew from $280.8 billion in 1990/91 to $2,251 billion in 2015/16- a 702
percent increase in 25 years.
II. Assessing growth sustainability; demand and supply-side challenges to
growth; analyzing growth from the demand and supply side—the Indian
experience
Is an 8% growth rate substantial for India?
Since 2005, India has been growing at the rate of >7% (except for the year 2008-09).
It is mainly because of the rapidly rising middle class of the country. The demand for
goods has been on the rise in the economy.
For the full fiscal year 2021-2022 (April 2021 to March 2022), India's real GDP
growth rate is forecast at 8.2%, recovering from a sharp 7.3% decline compared to the
previous year (2020-2021) due to the strong impact of the covid 19 pandemic. The
Indian economy is forecasted to continue to grow strongly in the financial year 2022-
2023, at a rate of 6.7%.
When the country starts showing signs of recovery from the pandemic, we will see a
considerable rise in employment, leading to more disposable income in the hands of
the people, leading to an increase in demand for goods and services. This would cause
a growth rate of >8% in the short run.
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Financial Stability Assignment 2022

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