I keep studying articles, books and reports on wealth & income . I’ve a keen interest in this subject.
We all know that as a nation we’ve a long way to go in coming out of poverty and raise the standard of living of our people. I came across different sets of data in this regard and wanted to share the same with you.
As per a recent Goldman Sachs report, the working population in India is classified as follows, based on average monthly income. I’ve taken 1 USD= Rs.66 for conversion.
Bottom 20%: Rs.2376 earnings per month
Next 27% : Rs.4455
Next 23% : Rs.11,875
Next 19% : Rs.13,750
Next 6% : Rs.29,617
Next 3% : Rs.61,875
Next 2% : Rs.62,915
Top 0.08% : Rs.13,75,000 earnings per month
In Mint newspaper today, there is a small news item on a survey conducted by ministry of labour and employment. As per this, 68% of households in India earn less than Rs.10,000 a month. Only 2% of households have an income of more than Rs.50,000 a month. Just 0.2% of the households earn more than Rs.1 lakh a month.
National Council for Applied Economic Research (NCAER) has conducted India Human Development Survey. They have classified our population as follows based on household income. I’ve given below the income per month per household.
Poorest Quintile (Poorest 20%) : Rs.2750 earnings per month
2’nd Quintile : Rs.4636
3’rd Quintile : Rs.7401
4th Quintile : Rs.13,300
Richest Quintile (Richest 20%) : Rs.13,301 and above.
I’ve shared with you in the past, global wealth report by Credit Suisse as well.
Only 5% of Indian population have wealth above $10,000 (Rs.6.6 lakhs). 95% of the population has almost negligible wealth.
Coming to the wealthy, as per latest new world wealth report, India has 95 billionaires (worth Rs.6600 crores+). There are around Rs.2.64 lakh millionaires (worth Rs.6.6 crores+, excluding primary residence). The breakup of millionaires city wise is as follows. I’ve given below only for few top cities.
Mumbai: 45,000 Millionaires
As far as middle class is concerned, it is around 2% of our population with an average monthly income of Rs.60,000. This includes 10 million government employees, around 1 million SME owners and 16 million working professionals. Out of this 16 million, around 4 million are employed in IT and BPO.
Hope this piece provides the perspective to put our income and wealth in the context of overall population.