India’s Gross National Income (GNI) and Net National Income (NNI) from 1950 to 2024

Looking at the long-term trajectory, India’s national income has experienced remarkable growth in both nominal and real terms. The nominal GNI has grown substantially from ₹10,181 crore in 1950-51 to an estimated ₹31,909,037 crore in 2024-25 (First Advance Estimates), representing a phenomenal increase. Similarly, the real GNI (at constant prices) has expanded from ₹495,274 crore to ₹18,198,409 crore during the same period, indicating significant growth in the economy’s productive capacity after accounting for inflation. The per capita net national income, a crucial indicator of living standards, shows a transformative improvement. In nominal terms, it has risen from just ₹265 in 1950-51 to a projected ₹200,162 in 2024-25, while in real terms, it has grown from ₹12,493 to ₹112,358, suggesting a substantial enhancement in the average Indian’s economic well-being.

During the COVID-19 pandemic in 2020-21, there was a notable contraction when real GNI declined to ₹13,493,976 crore from ₹14,392,900 crore in 2019-20. However, the economy demonstrated resilience by bouncing back strongly in subsequent years, with real GNI reaching ₹14,827,920 crore in 2021-22 and continuing its upward trajectory. The gap between GNI and NNI, which represents depreciation in the economy, has gradually widened over time, particularly in recent decades. This suggests increasing capital intensity in the Indian economy and the need for greater investment in maintaining and replacing productive assets. The growth trajectory has not been uniform throughout this period. The economy showed moderate growth in the initial decades post-independence, followed by accelerated growth, particularly after the 1991 economic reforms. In recent years (2022-23 to 2024-25), the projected real GNI growth remains strong despite global economic uncertainties.