By Sanjeev Oak
Economic inequality is not a uniquely Indian concern—it is a global dilemma. Even in affluent nations like Switzerland, wealth remains concentrated in the hands of a few. India, however, is responding with strategic reforms aimed at raising per capita income and ensuring more inclusive growth.
A recent report points to the widening global wealth gap, exacerbated by rapid automation and artificial intelligence displacing traditional jobs. It warns that concentrated wealth could pose serious risks to long-term economic stability. The report also highlights that just 1% of Switzerland’s population controls 43% of the nation’s wealth—a pattern mirrored in many other parts of the world, including India.
In India, half the population reportedly holds less than ₹350,000 (approximately $4,000) in assets, a stark contrast to Switzerland’s average per-adult wealth of $685,000. The average Indian wealth figure remains far below the global median of $8,654, underscoring the pressing need for per capita income growth. Rural poverty and unemployment remain among the root causes of this inequality.
A majority of India’s population still resides in rural areas and depends heavily on agriculture, which is plagued by unpredictable rainfall, outdated techniques, and poor irrigation infrastructure. Market volatility further compounds the economic vulnerability of Indian farmers. For decades, rural India remained peripheral to the country’s mainstream economic progress.
However, a shift is underway. Digital infrastructure improvements, expansion of India’s UPI (Unified Payments Interface), and increasing financial inclusion are helping integrate underserved populations into the formal economy. Millions have now risen out of poverty. The central government is leveraging this momentum as part of its long-term vision: transforming India into a developed economy by 2047, the centenary of its independence.
Dispelling Myths, Driving Growth
India is often perceived abroad as primarily an agrarian economy. While agriculture remains vital for food security and rural livelihoods, this perception is outdated. Services now account for more than 50% of India’s GDP. Manufacturing, construction, and mining sectors also contribute significantly, thanks to the government’s push toward economic diversification.
High-tech sectors such as IT, telecommunications, and financial services are driving modern economic growth. Meanwhile, a persistent misconception claims that India’s economic gains benefit only an elite few. While income inequality is a legitimate concern, it is overly simplistic to suggest that India’s economic growth has been monopolized by its wealthiest. In reality, millions have exited poverty over the past few decades, driven by consistent GDP growth and targeted policy interventions.
A Multi-Pronged Approach
India’s strategy to boost per capita income involves a multidimensional framework of structural, social, and economic reforms. Historic investments in infrastructure—roads, railways, ports, and urban transit—are not only driving growth but also generating employment.
Digital expansion is another pillar. Improved connectivity and the integration of digital tools are helping small businesses operate more efficiently and reach broader markets. Initiatives like Make in India and Aatmanirbhar Bharat (Self-Reliant India) aim to increase domestic manufacturing and exports, while national skilling programs are ensuring industries have access to qualified labor.
Agriculture is also evolving. New technologies are being introduced to improve crop yields, and heavy investment is being made in logistics, storage, and food processing to raise farmer incomes. The government is also supporting startups and research & development to foster innovation-led growth.
As a result, India is positioning itself as a global manufacturing hub—and with it, the foundation is being laid for a substantial rise in per capita income.
Global Trade and Financial Reform
India’s ongoing negotiations for new free trade agreements could open vast markets for Indian goods and services. These trade partnerships are expected to boost exports, attract foreign investment, and increase demand for Indian products abroad.
Domestically, reforms in the financial sector are making it easier to do business, especially for small and medium enterprises (SMEs). By streamlining regulations and creating a more entrepreneur-friendly environment, the government hopes to attract capital and support job creation.
In essence, India’s development strategy is not limited to GDP figures. It is about inclusive, sustainable growth—built on the combined strength of infrastructure investment, industrial capacity, agricultural modernization, and digital transformation.
The Road Ahead
India’s economic ascent is not merely aspirational—it is in motion. With decisive action today, the country could join the ranks of developed nations within the next few decades. The groundwork is being laid, and if sustained, the visible results will emerge not only in global economic rankings, but in the everyday lives of over a billion Indians.
