As families rise up the income ladder, education levels also rise,” says the report. “The linkage between education and income is very evident.
However, even within destitute households, only 15 per cent qualified as illiterate, with 37 per cent having received education up to the primary school level. Rich households registered a higher percentage of graduates, while destitute households had the highest percentage of illiterate individuals, according to the report. However, the other groups, such as seekers, strivers, and the near-rich, were nearly equally divided in rural and urban areas. The report highlights that the wealthiest households were concentrated in cities, while the poorest were based in villages. The middle-class and rich households also did not experience as much growth in urban areas compared to rural regions. Meanwhile, in urban areas, the destitute category witnessed a significant 7.6 per cent increase between 20. The report, however, did not outline the reasons for this.
Super-rich households in rural areas nearly doubled between 20, while other upper-income categories also experienced substantial growth rates of 6-10 per cent.ĭestitute households in rural areas decreased by 1.6 per cent during the same period. The growth rates of the upper-income classes, including “aspirers” and categories above it, were higher in rural areas than in cities between 20, according to the report. However, income inequality in India remains substantial, according to the report.Īlso Read: How govt drone survey is clearing up land ownership in villages across India On the other hand, the destitute category saw a contraction of 0.6 per cent during the same period, indicating upward mobility. Notably, the report highlights that the sheer rich and super-rich income groups experienced growth rates exceeding 10 per cent between 20, while the middle class witnessed growth rates ranging from 4 to 7.5 per cent. In its projections for 2030, the report says that the country’s demographics will “ change to a rudimentary diamond where a significant part of the low-income class moves to be a part of the middle class.” It further notes that the “average annual household disposable income is set to rise to about Rs 20 lakh at 2020-21 prices” by 2047. “By 2047, if political and economic reforms have their desired effect, the India income pyramid will have a smallish layer at the bottom comprising the Destitute and Aspirer groups, a huge bulge of the middle class and a big creamy ‘rich’ layer on top,” says the report. The households with the lowest income levels were categorised as “destitutes” with an income of less than Rs 1.25 lakh a year, followed by “aspirers”, defined as households earning between Rs 1.25 lakh to 5 lakh per annum. Similarly, the report classified the wealthy into three income groups: near-rich (Rs 30-50 lakh per annum), sheer rich (Rs 1-2 crore per annum), and super-rich (more than Rs 2 crore). This category was further divided into “seekers”, or those earning between Rs 5-15 lakh annually, and “strivers” who earn Rs 15-30 lakh. The survey defined the middle-class as households with an annual income of between Rs 5 lakh and Rs 30 lakh. The report further uses population growth, household disposable income growth, and rate of urbanisation to project income distribution for 20.
These findings are derived from a statistical analysis of primary data collected through PRICE’s ICE 360 pan-India surveys of 200,000 households conducted across three cycles in 2014, 2016, and 2021.įor the projections in the latest PRICE-ICE 360 report, 40,000 households were selected out of a sample of 2,00,000, which were then divided into eight groups based on annual income at 2020-21 prices. In contrast, the middle-class population stood at 43.2 crore in 2021. The middle-class population is estimated to reach 102 crore out of the projected total population of 166 crore in 2047, constituting approximately 61 per cent, the report predicts.
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