Per capita income, also known as income per person, is the mean income of the people in an economic unit such as a country or city. It is calculated by taking a measure of all sources of income in the aggregate (such as GDP or Gross national income) and dividing it by the total population.Per capita income as a measure of prosperity[edit]

Per capita income: total resources/total population.

Per capita income is often used as average income, a measure of the wealth of the population of a nation, particularly in comparison to other nations. Per capita income is often used to measure a country's standard of living. It is usually expressed in terms of a commonly used international currency such as the Euro or United States dollar, and is useful because it is widely known, easily calculated from readily-available GDP and population estimates, and produces a useful statistic for comparison of wealth between sovereign territories. This helps the country to know their development status.

Critics claim that per capita income has several weaknesses as an accurate measurement of prosperity:

Comparisons of per capita income over time need to take into account changes in prices. Without using measures of income adjusted for inflation, they will tend to overstate the effects of economic growth.

International comparisons can be distorted by differences in the costs of living between countries that aren't reflected in exchange rates. Where the objective of the comparison is to look at differences in living standards between countries, using a measure of per capita income adjusted for differences in purchasing power parity more accurately reflects the differences in what people are actually able to buy with their money.

As it is a mean value, it does not reflect income distribution. If the distribution of income within a country is skewed, a small wealthy class can increase per capita income far above that of the majority of the population. In this respect Median income is a more useful measure of prosperity than per capita income, because it is less influenced by the outliers.

Economic activity that does not result in monetary income, such as services provided within the family, or for barter, is usually not counted. The importance of these services varies widely among different economies.

Per capita income of Delhi rises by over 16 per cent: Report

'Saddi Dilli' is booming. Delhiites are on a consumption binge, flaunting their purchasing power by shopping till they drop and acquiring a ravenous appetite for eating out.

And figures best illustrate the 'have it, splurge it' story: the Capital's per capita income for 2011-12 was three times the national average and its growth rate almost twice that of the country.

Did someone say fast and furious? That pretty much sums it up. The city-state is on a high octane-fuelled growth trajectory, with services contributing to as much as 82 per cent of its GDP.

Significantly, the last decade or so has seen stupendous growth perhaps in sync with the rapidly rolled out infrastructure in the Capital. Patting herself on the back, Chief Minister Sheila Dikshit - while releasing an official report brimming over with the feel-good data - gushed on Friday: "My government has put Delhi on the path to sustainable development."

The Capital's gross state domestic product (GSDP) growth rate of 11.3 per cent in 2011-12 was well above the nation's faltering GDP growth estimate of 6.9 per cent for the year. It jumped from Rs.26.45 lakh crore in 2010-11 to Rs.31.39 lakh crore in 2011-12. The rise in the per capita income of Delhiites was a staggering 16.1 per cent - from Rs.1.51 lakh in 2010-11 to Rs.1.76 lakh during 2011-12.

This meant that on the affluence index, the Capital's citizens ranked next only to Goa (it has a per capita income of Rs.1.92 lakh) in the country. In stark contrast, the national per capita income for 2011-12 was estimated at a modest Rs.60,972.

The figure for the per capita income is arrived at by dividing the total income of the state by its entire population. This gives the average earnings of each person if the total income is divided equally among all its citizens.

This is where the catch lies. For, there is a yawning chasm between Delhi's prosperous swish set and those residents of the Capital who are gasping to make ends meet.

The results of the just-concluded MCD elections were a manifestation of the rich-poor divide. The Congress, which has been in power in the state for 14 years, could not wrest control of the civic authority from the BJP and was trounced.

Professor Sri Ram Khanna of Delhi School of Economics' commerce department explained: "Delhi is definitely becoming richer, but the fact is that the poor are finding it increasingly difficult to survive because of an increase in rates and high cost of living in the city. We must remember that these growth numbers are the average and don't tell us the state of the poorest of the poor."

Widening gap

The figures in the report demonstrate that the gap between Delhi's GSDP and the all-India GDP has been widening consistently. While Delhi accounts for only 1.4 per cent of the country's population, it contributes as much as 3.8 per cent to the total GDP.

The contribution of the tertiary or services sector which comprises hotels, restaurants, trading activities, transport, telecom, banks and insurance activities in the state's economy has grown from 85.09 per cent to 86.65 per cent.

Within this category, the net state domestic product (NSDP) contribution from trades, hotels and restaurants has increased from Rs.49,403 crore to Rs.58,976 crore. This sector registered a growth of around 17 per cent and 19.4 per cent between 2010-11 and 2011-12, respectively.

The lion's share within this sector belongs to financial, insurance, real estate and business services, which contribute around 39 per cent to the state's domestic product. This is followed by the trade, hotels and restaurant sub-sector that accounts for a share of around 19 per cent.

"The restaurant sector has seen tremendous growth in the last few years in all the segments and concepts. We now have growth in the food courts, cafes, casual and fine dining. We see a tremendous scope in the Delhi Metro's transit stations," National Restaurant Association of India president Samir Kukreja said.

The flipside

Saeed Shervani, vice-president of the Federation of Hotel Restaurants Association of India, concurred, saying: "The growth of restaurants has been unprecedented, largely because of the change in the eating habits of Delhiites. They are no longer conservative, butter chicken-eating people, but are willing to experiment a lot more. The taxes - both excise and VAT - should be relooked at along with the licensing regime."

However, another flipside of the rosy picture is that the share of the agriculture and manufacturing sector activities has progressively fallen, though that of the services sector has surged.

The secondary sector comprising manufacturing and construction activities has seen its share in the state's GSDP coming down from 14.18 per cent to 14.07 per cent. Within this sector, the contribution of the manufacturing segment is merely 5 per cent and the construction sector comprises a higher 9.6 per cent. The primary sector, which includes agriculture and dairy activities, forms an insignificant 0.70 per cent of the GSDP in 2011-12 as against 0.73 per cent in 2010-11.

"The reason for the decline of the manufacturing and the secondary sector in the Capital is the rise in living costs, land rates and other pollution-related issues. Many of the manufacturing units have moved out of Delhi, to neighbouring areas such as Noida, Ghaziabad and other parts of the NCR where operational and related costs are lower," Dr Dalip Kumar of the National Council for Applied Economic Research observed.

Read more at: http://indiatoday.intoday.in/story/delhi-booming-economic-growth-rate/1/186421.html

Delhi's per capita income rises to Rs 2 lakh a yearAs per the economic survey of Delhi 2011-12 that was laid in the House on Tuesday, the per capita income at current prices is estimated at Rs 2,01,083 per annum in 2012-13 as compared to Rs 1,73,686 in 2011-12.

According to the officials, the per capita income (PCI) in the capital is three times higher as compared to the national average. “The PCI of Delhi at current prices increased from Rs 63,877

in 2004-05 to Rs 2,01,083 in 2012-13, recorded an annual compound growth rate at 15.41 per cent. During the same period, the per capita income at constant prices increased at 8.25 per cent per annum,” the survey said.

The survey was tabled in the Assembly by chief minister Sheila Dikshit. The contribution of primary sector — agriculture, livestock and fisheries — to gross state domestic product (GSDP) is going down since last nine years. The survey said, “The GSDP of Delhi has increased from Rs 1,00,324 crore in 2004-05 to Rs 3,65,726 crore in 2012-13 with a growth rate of 17.7 per cent at current prices and nine per cent at constant (2004-05) prices.”

“Over 80 per cent Delhi’s income was generated from the service sector, less than 20 per cent from industrial sector and less than 1 per cent from the primary sector.”

It added that the reduction of poverty level in the city was higher than the national level even if the migration to Delhi was highest during the last three decades.

Solid waste generated

Delhi generates 8,500 tonne of solid waste daily, the survey said. Around 500 to 600 Million Gallon Daily sewage is also generated in the city. It added that Delhi also produces 10 metric tonne of bio-medical waste daily while a total of 583 metric tonne of plastic waste is generated every year, reports agencies.

The survey said vehicular exhaust as main source of air pollution. The number of vehicles registered in Delhi has increased from 24.32 lakh in 1994-95 to over 74 lakh in March 2012.

Delhi’s per capita income up, second highest in countryShowing sustained economic growth, Delhi's per capita annual income registered an increase of over 16 per cent in the last fiscal year. According to a report released by the Chief Minister, the growth is thrice the national average and the second highest in the country.

The report, prepared by the Directorate of Economics and Statistics of the city government, says that the per capita income last fiscal yearin Delhi at current prices and without factoring in inflation has been estimated at Rs 1,75,812, an increase of Rs 25,159 from 2010-11.Goa was at the top with a per capita income of Rs 1,92,652 and Haryana took the third spot with a per capita income of Rs 1,09,227. The national average was estimated to be Rs 60,972.On the basis of constant prices, the per capita income in Delhi was estimated at Rs 1,19,032 in 2011-12, a jump of Rs 10,156 compared to the previous fiscal. The national average was estimated to be Rs 38,005 in 2011-12, up from Rs 35,993 in 2010-11.

Dikshit said, "The figures indicate that the economy of Delhi is on the path of sustainable economic growth in a considerable manner." Officials said the per capita income of Delhi in 1998-99 was Rs 40,060 against Rs 1,75,812 in 2011-12. They said this reflects a hike of 339 per cent in the last 13 years.

The gross state domestic product (GSDP) of Delhi at current prices for 2011-12 has been estimated at Rs 3.13 lakh crore, an increase of 18.7 per cent over the previous fiscal. The contribution of Delhi towards the national GDP was 3.8 per cent in 2011-12 with 1.4 per cent of the country's population.

The report said the economy of the Capital grew at 11.43 per cent during 2011-12 against 10.92 per cent in 2010-11. The Chief Minister, who also holds the finance portfolio, said while releasing the report that the GSDP of Delhi at current prices for 2011-12 has been estimated at Rs 3,13,934 crore against Rs 2,64,496 crore in 2010-11.

As per the report, the share of service sector in GSDP of Delhi was about 82 per cent, followed by secondary sector at 17 per cent and primary sector at 0.87 per cent. The primary sector comprises agriculture and allied services while secondary sector consists of construction and manufacturing sectors. Dikshit said the city was developing as a major

centre of service sector, leaving neighbouring cities like Noida and Gurgaon behind.

The per capita annual income in the national capital has increased by nearly 16 per cent to Rs 2.01 lakh in 2012-13 compared to the previous fiscal, which is three times the national average and second highest in the country.

The per capita income of people in Delhi at current prices without factoring in inflation has been estimated at Rs 2,01,083 which is a rise of Rs 27,397 from Rs 1,73,686 in 2011-12, according to Economic Survey tabled today in Delhi Assembly. The national average has been worked out at Rs 61,564.

On the basis of constant prices, the per capita income for 2012-13 was estimated at Rs 1,20,414, a jump of Rs 7,788 compared to Rs 1,12,626 the previous fiscal. The national average was estimated at Rs 39,143 against Rs 38,037 in 2011-12. The data has been reached as per advanced estimate.

"The per capita income reflects the availability of ample employment opportunity in the city and satisfaction level of the residents," Chief Minister Sheila Dikshit who presented the economic survey said.

As per the economic survey, gross state domestic product at current prices has increased to Rs 3.65 lakh crore in 2012-13 which is a growth of 17.70 per cent over the Rs 3.10 lakh crore in 2011-12.

"The advanced estimate of gross state domestic product of Delhi during 2012-13 recorded at Rs 3,65,726 crore," the survey report said.

At constant prices, the gross state domestic product for 2012-13 was recorded at Rs 2.20 lakh crore as against 2.02 lakh crore in 2011-12.

The survey said Delhi government's outstanding debt has reduced from Rs 30,140 crore in 2010-11 to 28,308 crore in 2012-13.

The fiscal deficit of Delhi government was Rs 2,545 crore in 2011-12, which is 0.82 per cent of GSDP as compared to estimated fiscal deficit of 5.5 per cent of the Government of India during the same year.

The survey said the annual plan outlay of Delhi has increased from Rs 9,000 crore in 2007-08 to Rs 15,000 crore in 2012-13. The plan outlay for 12th Five Year Plan of Delhi has been fixed at Rs 90,000 crore as against Rs 54,799 crore in 11th Five Year Plan.

As per the survey, the decennial population growth of Delhi during 2001-2011 was recorded as 20.96 per cent as compared to around 50 per cent in each decade between 1961 and 1991 and 47 per cent between 1991 and 2001. The population of Delhi as on March 2011 was recorded at 167.53 lakh.

The sex ratio has improved from 821 in 2001 to 866 in 2011.

The density of population has increased from 9,340 persons per square km in 2001 to 11,297 persons per sq km in 2011.

According to the survey, the literacy rate has increased from 81.67 per cent in 2001 to 86.34 per cent in 2011. The urban population of Delhi increased from 93.18 per cent in 2001 to 97.50 per cent in 2011.

It said New Delhi and Central Delhi districts have 100 per cent urban population. The birth rate as per civil registration system has decreased from 21.3 per thousand of population in 2001 to 20.98 in 2011.

As per the survey, Delhi government provided a total of Rs 6,582 crore during the period 2006-11 to the local bodies as compared to 1,625 crore during 1996-2001.

About greenery, the survey said the green cover in Delhi has increased from 26 sq km in 1997 to 299 sq km in 2009.

The total cropped area reduced from 52,816 hectares in 2000-01 to 35,178 hectares in 2012-13. The net area shown has reduced from 34,034 hectares in 2000-01 to 23,118 hectares in 2012-13, the survey said.

The net area irrigated has reduced from 24,230 hectares in 2005-06 to 21,786 hectares in 2011-12.

As per the survey, the number of villages in the national capital has reduced from 304 in 1951 to 112 in 2011.

On power sector, it said the number of electricity consumers increased from 25.65 lakh in 2002-03 to 43.01 lakh in 2011-12, while AT&C (Aggregate Technical and Commercial) losses were brought down from 57.2 per cent in 2002-03 to 23.1 per cent in 2009-10 by BSES Yamuna Power Ltd, 48.10 per cent to 20.53 per cent by BSES Rajdhani Power Ltd and 48.01 per cent to 14.47 per cent by NDPL.

The number of vehicles registered with Transport Authorities increased from 31.64 lakh in 1999-2000 to 74.53 lakh in 2011-12 in Delhi while the annual growth of vehicles increased from 4.72 per cent in 1999-2000 to 7.2 per cent in 2011-12.

About 39 per cent of the households are having scooter/ motor cycle, 21 per cent are having cars and jeeps and 31 per cent are having bicycles as mode of transport in 2011.

The road network has increased from 14,316 km lane in 1980-81 to 32,663 km lane in 2011.

About 81.30 per cent of the households were having piped water supply system in their houses in 2011, while the water supply capacity was increased from 650 Million Gallon Daily (MGD) in 2006 to 848 MGD in 2012.

The total number of water connections provided by DJB were 17.85 lakhs in 2009-10. As on April 2012, there were 3.99 lakh unmetered connections.

The survey said about 109 MGD of treated waste water is being utilized for cooling of power plants, horticulture, parks irrigation as well as crops irrigation.It said the urban area of Delhi has increased from 327 sq km in 1961 to 1,114 sq km in 2011.

The total number of households increased from 25.54 lakh in 2001 to 33.41 lakh in 2011 in Delhi. Toilet facility was available to 29.90 lakh households in 2011.The survey report said the per capita expenditure on education increased from Rs 1,050 in 2005-06 to Rs 2,969 in 2011-12. The total number of schools increased from 4,862 in 2004-05 to 5,073 in 2010-11.Per Capita Expenditure on health by Delhi government increased from Rs 710 in 2006-07 to Rs 1,418 in 2010-11.The total number of births registered during the year 2011 was 3.54 lakhs as against 3.59 lakhs in 2010. The average number of births per day was 969 in 2011 as against 985 in 2010.

A total 1,12,142 deaths were registered during the year 2011 as compared to 1,24,353 deaths during the year 2010.