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India's Economic Paradox: Aggregate Growth Masks Persistent Per Capita Disparities

Agency Source: The Hindu: Latest News today from India and the World, Breaking news, Top Headlines and Trending New Bureau Release: February 3, 2026 | 10:02 IST
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Intelligence analysis reveals a critical divergence in India's economic trajectory: while aggregate GDP continues its robust expansion, positioning the nation among the world's fastest-growing major economies, per capita GDP metrics persistently trail global benchmarks. This disparity underscores structural challenges that could impede long-term sustainable development and global competitiveness. The widening gap between total economic output and individual prosperity suggests that growth benefits remain unevenly distributed, potentially exacerbating socioeconomic inequalities. Our assessment indicates that demographic pressures, coupled with insufficient productivity gains across key sectors, are primary contributors to this per capita lag. Furthermore, comparative analysis with peer economies highlights India's relative underperformance in translating macroeconomic expansion into tangible improvements in living standards. This intelligence suggests that without targeted policy interventions to enhance human capital, accelerate technological adoption, and foster inclusive growth frameworks, India risks perpetuating a development model where headline GDP figures obscure underlying vulnerabilities. The situation warrants close monitoring as it may influence regional economic stability and global investment patterns.

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