Why real per capita income is considered to be better indicator of growth than growth of real national income?

Economic Growth is sometimes defined as a long term increase in real national income or real national output but that may not be best indicator of growth. There are two conditions in which the value of the national output or national income may increase:

1. When the production of goods and services increases but prices of goods and service are constant.
2. When the prices of goods and services increase but production of goods and services remain constant

The Economic growth would be considered “real growth” when production of goods and services increases without increase in the prices of goods and services, because this would imply in general economic welfare of the people. However, this will be true only when population also remains stable; because then only real growth would result in increased availability of goods and services per head of population of the country. Thus, real per capita income and not the growth of real national income is a better indicator of well being of the people of a country.