'There are 139 countries ahead of us...': Financial planner cuts through India's GDP hype

When Chennai-based financial planner D Muthukrishnan questioned India's excitement over achieving the world's 5th-largest GDP, he touched a raw nerve. 

"Why should we celebrate India's 5th rank in GDP or it becoming 3rd in next few years?" he asked on X, underscoring a critical point often overlooked: India's per capita income sits uncomfortably at the 140th position globally, far behind its GDP glory.

Muthukrishnan in his post challenged the popular celebration around India's climbing GDP rank, highlighting a significant disconnect. 

"What is the point of seeing numerator, GDP without seeing denominator, population," he wrote.

Despite impressive growth projections — India's economy expected to grow at 6.5% in FY25, driven by strong agriculture and robust services—the planner brings attention back to individual prosperity. 

"Our rank is 140 based on GDP per capita. There are 139 countries ahead of us," he stresses. Even considering Purchasing Power Parity (PPP), often used to better reflect living standards, India's position remains troublingly low at 119th.

Muthukrishnan proposes a straightforward yet demanding target: "Let us work towards creating a per capita of at least $10,000. That itself requires three decades of hard work and favourable economic conditions."

While recent economic reports point to optimism—retail inflation dipping to 3.6%, food grain production at record highs, and government maintaining disciplined fiscal measures—these positive macroeconomic indicators have not yet translated into meaningful improvements in the average citizen’s earnings.

India’s capital markets, despite corrections and foreign investor fluctuations, remain resilient, supported by steady domestic investments. Employment numbers remain stable, and hiring outlooks are cautiously optimistic, driven by government initiatives and anticipated post-election spending.