Moderation in the growth rate has come with some good news, with the country's per capita income expecting to more than double over the last seven years to Rs 38,084 in 2008-09, reflecting improvement in the living standards of an average Indian.
Per capita income, according to advance estimates for national income released today, is expected to grow by 14.4 per cent during the current fiscal, the highest growth rate recorded in a single year in the last decade.
Though the Gross Domestic Product (GDP) growth rate during the current fiscal is estimated to drop to 7.1 per cent from 9 per cent a year ago, per capita income is expected to soar by Rs 4,801 to Rs 38,084 during 2008-09.
The country's per capita income, which is an important indicator of economic development of a nation, was Rs 18,885 during 2002-03.
The growth in the per capita income takes into account the increase in the country's population, which is likely to rise to 115.4 crore by March 2009 from 113.8 crore a year ago.
In percentage terms, the previous highest increase in per capita income during the last decade at 13.5 per cent was witnessed during 2006-07.
However, after discounting for inflation (at 1999-2000 prices), the per capita income is expected to rise to Rs 25,661, representing an increase of 5.6 per cent.