An excerpt from Ajit Balakrishnan’s convocation speech at IIM-C:
By , some say, India’s GDP in US$ terms will exceed not only the European countries and Japan but also, perhaps, the United States.
But what these reports also say, and this part is often overlooked, is that in 2040, India’s per capita GDP will be just 15% of that of the United States and a third of that of even Russia.
Another way of putting it is that even thirty five years from now, the average Indian will earn just Rs 5,000 a month. On this income he will have to feed and educate his children, look after their healthcare needs, afford entertainment and life insurance.
This means he must have a place to stay with clean water supply at, say, Rs 200 per month , uninterrupted electric power, perhaps at 50 paise per unit at the consumer level, medical insurance at, say, Rs 10 per person per month and life insurance perhaps at Rs 5 per person per month.