Great news for Chandigarh. The city has bagged second position in India with second highest per capita income among all states and union territories for the year 2015-16. An indicator of development, per capita income of Chandigarh is Rs. 2.42 lakh which is over 2.5 times the national average. Sikkim occupied the third position with PCI of Rs. 2,27,465.
Sikkim occupied the third position with Per Capita Income of Rs. 2,27,465 while Delhi stood first in the list. Chandigarh recorded per capita income of Rs. Rs 2,40,687 in year 2015-15 whereas in 2015-16 city noted per capita income of Rs. 2,42,386.
What is Per Capita Income?
Calculated by dividing area’s total income by its total population, per capita income or average income measures the average income earned by per person in a given area (city, region, country, etc.) in a specified year. Per capita income indicates living standards, taxation, and governmental expenditures referring to the income of the region. The following article has provided a detailed information of GDP relating to wages, cost of living, tax, and real GDP.
Chandigarh’s per capita income of Rs 2,42,386 has seen an increase of 0.7% as compared to last year.
Importance of Per Capita Income
The most common use of income per capita is to assess an area’s wealth. It also helps to ascertain an area’s affordability. Per capita income is a useful statistic that helps in comparing wealth between states/territories. PCI helps to ascertain an area’s development status. It serves as a measure useful in calculating Human Development Index of a country.
Per Capita Income of Chandigarh & its Benefits
- Increase in living standards as Chandigarhians are consuming higher levels of goods and services.
- Increased per capita income in Chandigarh means increased tax revenues that will help government spend more on important public services such as health, hospitals and education.
- Increase in employment – Chandigarh’s per capita income indicates that employability has increased in the city.
- Increase in economic growth will reduce unemployment by creating jobs. More corporates will like to set up offices in Chandigarh. It is important that employability increases as unemployment is a major source of social problems like crime and alienation.
- Increased consumption of luxury goods – Chandigahians love to live a good life and love to own branded stuff. Increased per capita indicates that the lifestyle is improving.
There’s no doubt in the fact that Chandigarh is a rich city and the per capita income means that everyone living in Chandigarh earns Rs. 2,42,386 per year. This makes it Rs. 20,198 per month. Now, that’s actually very good. Just imagine everyone living in Chandigarh earns Rs. 20,200 per month.
By the way what is your salary? Is it above this amount or below?