Average incomes to be on the higher side-Economic revival

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high incomeThe economic revival will increase the average income off the people and also will reduce the fiscal deficit of the government.

Based on CSO data, the income average of an Indian will be going up by 9% to about Rs. 43,749 during the year 2009-10 at present price level as compared to 13.3% that had registered in 2008-09.The per capita income happens to be an indicator of collective prosperity that happened to be Rs.40,141 in 2008-09

The growth rate was low in 2009-10 partly on account of poor exports which are outward shipments that add to the net national income. Imports of course reduced it. It is estimated that the export contribution towards the economy during the year 2009-10 is likely to fall to 18.6% from 23.5% in 2008-9.Although, the net national income had increased by 10.5% in 2009-10, the per capita income expanded by only 9%. This of course is mainly on account of the rise in population from about 1.15 billion to about 1.17 billion in 2009-10.

The higher growth rate will assist the Center in reducing its fiscal deficit as the GDP percentage although in actual terms remained the same.

As one expands the GDP at about 10.8% at what is the current price, the size of the Indian economy will turn out to be around Rs. 1,64,178 crore. In the previous budget, it was projected to be of the size at Rs. 58,56,569 crore.

Comment: The economic recession caused much setback to the Indian economy. The exports had fallen and there was unemployment. Now the situation is slowly improving. Investors are looking towards better days. Those thrown out of jobs are hoping to find jobs again. The recovery may be slow, but it definitely has raised hopes in the mind of many.

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