Need to increase per capita income to make India 3rd largest economy: Bandhan Bank MD

New Delhi: Bandhan Bank managing director Chandra Shekhar Ghosh on Tuesday said there is a need to increase per capita income to make India third largest economy in the world.

The per capita income of the fifth largest economy, as per the government data, stood at Rs 98,374 in 2022-23.

India ranks 130th globally in terms of Human Development Index comprising per capital income, education and health parameters, Speaking at an event organised by CII here, Ghosh said, to make India third largest economy in the world or to achieve USD 5 trillion size, per capita income has to increase.

"We need to focus on per capita income improvement so that people have higher income and therefore spending would increase. So that should be the main focus," he said.

Ghosh said financial inclusion and access to institutional credit play an important role in improvement of per capital income.

The government has taken many initiatives, including Pradhan Mantri Jan Dhan Yojana (PMJDY) and Pradhan Mantri Mudra Yojana, in this direction.

Under the PMJDY, around 51 crore zero balance bank accounts have been opened so far.

PMJDY was launched as the National Mission for Financial Inclusion on August 28, 2014. It aims to ensure comprehensive financial inclusion in the country by providing universal access to banking facilities and basic bank accounts to every unbanked adult.

Pradhan Mantri Mudra Yojana (PMMY) is helping unbanked to get collateral-free credit. More than 44 crore loan accounts opened and more than Rs 26.12 lakh crore sanctioned as on November 24, 2023.

Digital Public Infrastructure (DPI) has helped significantly in the growth of digital payment in the country, he said, adding, this has also created a need for digital literacy to save people from cyber crime.