Per Capita Income

Per capita income is the average income earned per person in a specific population or geographical area over a defined period, usually a year. It is a widely used economic indicator to measure the standard of living and economic well-being of people in a country or region.

Calculation Per Capita Income = Total Income of the Population Total Population Per Capita Income= Total Population Total Income of the Population ​

Key Features Average Measure Represents mean income, not the distribution of wealth. Does not indicate income inequality or wealth concentration.

Scope Can be calculated for: Countries States or provinces Cities or districts Uses Assessing standard of living: Higher per capita income often correlates with better quality of life. Economic planning: Helps governments and policymakers in resource allocation. International comparison: Facilitates comparison of income levels between countries or regions. Limitations Does not account for income distribution or poverty levels. May be skewed by extremely high incomes among a small fraction of the population.

Example: A country has a total annual income of ₹500,000 crore and a population of 50 crore. Per Capita Income = ₹500,000 crore ÷ 50 crore = ₹10,000 per person per year