Union finance minister Nirmala Sitharaman has expressed optimism about the nation's economic growth, forecasting a substantial increase in per capita income over the next five years. 

Speaking at the Kautilya Economic Conclave, she forecast that India’s per capita income would rise by an additional $2,000 in the upcoming half-decade. 

Sitharaman highlighted that while it took the country 75 years to reach a per capita income of $2,730, the next jump is anticipated to occur at a significantly quicker rate.

Furthermore, the finance minister stressed the crucial role of consumption in the Indian economy, noting that it accounts for over 60% of the country’s GDP. She highlighted the significance of India’s youthful demographic, with nearly 43% of the population under the age of 24, stating that this is a vital factor in driving organic consumption growth, Business Standard reports.

She also commended India’s financial system, asserting that it now competes on equal footing with global markets, and highlighted the need to nurture the younger generation both mentally and physically to ensure their contribution to the country’s economic future. 

In addition, comparing to China, she pointed out how its growth benefited from a favourable global trade and investment environment. 

The finance minister's speech conveyed optimism regarding India's potential for sustained economic growth, driven by innovation and a robust financial framework.

Sitharaman previously stated that India distinguishes itself on the global stage for its economic performance and is expected to maintain this momentum in the years ahead.

“We are faring much better than many other nations, even those considered advanced. Today, they are struggling to grow. We are distinguishing ourselves as the fastest-growing economy in recent years, including this year and for the foreseeable future,” she stated. 

Moreover, India's economy grew by 8.2% in 2023-24. Additionally, the Economic Survey 2023-24, presented in Parliament in July, projects growth to be between 6.5% and 7% for the current fiscal year.