Per capita income is considered to be a better measure of economic progress as compared to that of national income.
Per capita income is the average income of the people of a country in a definite period. Obviously per capita income is the average income. Thus, per capita income does not mean that each and every individual of the country is having income equal to it. Some people might be having income greater than it and some less than it. For example, the per capita income of India at current prices in 2013-14 was ₹ 74380 and that of Punjab was ₹ 74606.
Per capita income can be calculated by dividing national income by the population.
In other words,
Per Capita Income = \(\frac{National \,Income }{ Population}\)
