 Small Steps Toward A Much Better World Growth Matters
2025-12-15 12:18 UTC by Alex TabarrokBetween 2011 and 2023 India’s GDP per capita grew at a rate of about 4.8% per year so in those 12 years GDP per capita, a good measure of the standard of living, nearly doubled (77%). Shamika Ravi and Sindhuja Penumarty look at what this means on the ground.
The percentage of the budget spent on food has declined–dropping below 50% for the first time ever–and that has enabled significant purchases of consumer durables.
It will perhaps not be surprising that mobile phones have become universal among both the poor and the rich but vehicle ownership is also converging with rural ownership of a vehicle (2 or 4 wheeler) nearly tripling from (19% to 59%).
Another standout is refrigerators which reflects growing income and reliable electricity. In the 12 years across the survey, refrigerator ownership in rural areas more than tripled from 9.4% circa 2011 to 33.2% in 2023. In urban areas refrigerator ownership went from less than half (43.8%) to more than two-thirds (68.1%) of urban households. Overall, only two states Bihar (37.1%) and Odisha (46.3%), had less than 50% of urban households owning a refrigerator in 2023-24.
Economists are often accused of “line go up” thinking but the truth is that line go up matters. The 4.8% annual growth matters because it shows up as a broad, visible upgrade in how people live.
The post Growth Matters appeared first on Marginal REVOLUTION.
Content mobilized by FeedBlitz RSS Services, the premium FeedBurner alternative. | 
