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 a CII event here, Ghosh said, to make India third largest economy in the world or to achieve $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 highlighted the role of financial inclusion and access to institutional credit to be crucial for raising per capita income.