Income in India
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Income in Indiadiscusses the financial state inIndia.With rising economic growth and prosperity, India's income is also rising rapidly. As an overview, India's per capitanet national incomeor NNI was around Rs. 98,374 in 2022-23.[1]Theper-capita incomeis a crude indicator of the prosperity of a country. In contrast, thegross national incomeat constant prices stood at over 128 trillion rupees.[2]The same year, GRI growth rate at constant prices was around 6.6 percent. While GNI and NNI are both indicators for a country's economic performance and welfare, the GNI is related to the GDP or theGross Domestic Productplus the net receipts from abroad, including wages and salaries, property income, net taxes and subsidies receivable from abroad. On the other hand, the NNI of a country is equal to its GNI net of depreciation.
Financial year data
[edit]| Year | At current prices (INR) | At 2011-12 prices (INR) | ||||
|---|---|---|---|---|---|---|
| GDP per capita | GNI per capita | NNI per capita | GDP per capita | GNI per capita | NNI per capita | |
| 2023-24 | 211,725 | 208,633 | 184,205 | 124,600 | 122,766 | 106,744 |
| 2022-23 | 194,879 | 192,201 | 169,496 | 116,216 | 114,478 | 99,404 |
| 2021-22 | 172,422 | 170,392 | 150,906 | 109,762 | 108,345 | 94,054 |
| 2020-21 | 146,301 | 144,334 | 127,065 | 100,981 | 99,578 | 86,054 |
| 2019-20 | 149,701 | 148,261 | 132,115 | 108,247 | 107,191 | 94,270 |
| 2018-19 | 142,328 | 140,804 | 125,883 | 105,526 | 104,377 | 92,241 |
| 2017-18 | 130,061 | 128,655 | 115,224 | 100,035 | 98,925 | 87,586 |
| 2016-17 | 118,489 | 116,070 | 103,870 | 94,752 | 93,639 | 83,003 |
| 2015-16 | 107,342 | 106,096 | 94,797 | 88,617 | 87,565 | 77,659 |
| 2014-15 | 98,405 | 97,241 | 86,647 | 83,091 | 82,107 | 72,805 |
| 2013-14 | 89,796 | 88,678 | 79,118 | 78,348 | 77,370 | 68,572 |
| 2012-13 | 80,519 | 79,573 | 70,983 | 74,600 | 73,722 | 65,538 |
| 2011-12 | 71,610 | 70,980 | 63,462 | 71,610 | 70,980 | 63,462 |
Estimates
[edit]TheInternational Labour Organizationin its reportIndia Employment Report 2024: Youth Employment, Education and Skillsstates that the average earning of regular salaried workers (Rs 19,010) was considerably higher than those of self-employed (Rs 11,973) and casual (Rs 8,267) workers in 2022.[5]
| Employment | Rural | Urban | Total |
|---|---|---|---|
| Self-employed | 10,201 | 17,991 | 11,973 |
| Regular salaried | 15,177 | 21,826 | 19,010 |
| Casual | 7,997 | 9,749 | 8,267 |
| Employment | Number (million) | Share |
|---|---|---|
| Self-employed | 304.1 | 55.8% |
| Regular salaried | 118.1 | 21.5% |
| Casual | 122.2 | 22.7% |
India's nominalper capita incomewas US$1,670 per year in 2016, ranked 112th out of 164 countries by theWorld Bank,[7]while its per capita income onpurchasing power parity(PPP) basis was US$5,350, and ranked 106th.[8]Other estimates for per capita gross national income and gross domestic product vary by source. For example, India's average GDP per capita on PPP basis in 2009, according toThe Economist,was US$5,138, with significant variation among its states and union territories.Goahad the highest per capita PPP GDP at US$14,903, whileBiharthe lowest with per capita PPP GDP of US$682 as of 2015[9]In rupee terms, India's per capita income grew by 10.4% to reach Rs.74,920 in 2013–14.
While India's per capita incomes were low, the average household size and consequent household incomes were higher. India had a total of 247 million households in 2011, with an average of about 4.9 people per household, according toCensus of India.[10]
Estimates for average household income and the size of India's middle-income households vary by source. Using World Bank's definition of middle-income families to be those with per capita income between $10 and $50 per day,[11]the National Council of Applied Economic Research[12]of India completed a survey and concluded there were 153 million people who belonged to middle income group in 2006. In contrast, Meyer and Birdsall and Tim Light used a different survey and estimated the number of Middle-Income population to be about 70 million in 2009–2010.[13]These groups, as well as the World Bank, estimated in their 2011 reports that if India's economy continues to grow per projections, India's middle income group would double by 2015 over 2010 levels, and grow by an additional 500 million people by 2025. This would make it, with China, the world's largest middle income market.[14]
Compared to other countries,income inequality in Indiais relatively small as measured byGini coefficient.India had a Gini coefficient of 32.5 in the year 1999- 2000;[15]India's nominal Gini index rose to 36.8 in 2005, while real Gini after tax remained nearly flat at 32.6.[16]
The states of India have significant disparities in their average income.[17]Biharwas by far the poorest in India, and per capita income was low in its neighbouring states, along withUttar Pradesh,Jharkhand,Jammu & Kashmir,Assam,Manipur,andNagaland.[18]The higher income states includeGoa,Delhi,Haryana,Sikkim,Telangana,Maharashtra,Tamil Nadu,Gujarat,Himachal Pradesh,Punjab,Uttarakhand,andKerala.[19][20][21]
Rural-urban gap
[edit]
As in other countries, residents of Indian cities have a higher per capita income and standard of living than rural residents. Towns and cities make more than two-thirds of the Indian GDP, even though less than a third of the population live in them.[23]
TheEconomic Survey of India 2007byOECDconcluded that:
"At the state level, economic performance is much better in states with a relatively liberal regulatory environment than in the relatively more restrictive states".[23]
The analysis of this report suggests that the differences in economic performance across states are associated with the extent to which states have introduced market-oriented reforms. Thus, further reforms on these lines, complemented with measures to improve infrastructure, education and basic services, would increase the potential for growth outside of agriculture and thus boost better-paid employment, which is a key to sharing the fruits of growth and lowering poverty.
Statistics
[edit]Percentage share in total national household disposable income by Class(2016)[24]
Distribution of Annual Household Income in India(in pounds/annum)[25]
| Income Group | No. of tax payers(inlakhs) | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| Up to ₹5 lac | |||||||||
| ₹5-10 lac | |||||||||
| ₹10-20 lac | |||||||||
| ₹20-50 lac | |||||||||
| ₹50 lac to ₹1 crore | |||||||||
| Over ₹1 crore | |||||||||
|
Source: IT Department | |||||||||
See also
[edit]- List of Indian states and union territories by GDP per capita
- States of India by size of economy
- Poverty in India
References
[edit]- ^"PER CAPITA INCOME".pib.gov.in.Retrieved7 April2024.
- ^"Per capita national income in India FY 2015-2020 Published by Statista Research Department, Oct 16, 2020".
- ^"GDP per capita of India".StatisticsTimes.Retrieved27 December2021.
- ^"Press Note on Provisional Estimates of Annual GDP for 2023-24"(PDF).Ministry of Statistics & Programme Implementation, India.Retrieved12 August2023.
- ^"Salaried workers' real wages dropped between 2012 and 2022: ILO study".Business Standard.Retrieved11 May2021.
- ^ab"India Employment Report 2024: Youth Employment, Education and Skills"(PDF).International Labour Organization.Retrieved11 May2024.
- ^"GNI per capita, Atlas method (current US$)".World Bank. 1 May 2014.Retrieved16 July2014.
- ^"GNI per capita, PPP (current international $)".World Bank. 1 May 2014.Retrieved16 July2014.
- ^"Per capita of Indian states".Archived fromthe originalon 30 October 2017.Retrieved16 January2016.
- ^Households data for IndiaArchived26 July 2014 at theWayback MachineCensus of India 2011, Govt of India (2013)
- ^Kharas, H. (2010). The Emerging Middle Class In Developing Countries. Working Paper 285, OECD Development Center, Paris
- ^National Survey of Household Income and Expenditure (NSHIE)/Market Information Survey of Households (MISH)NCAER India (2013)
- ^Meyer and Birdsall,New Estimates of India's Middle ClassCenter for Global Development (2012)
- ^Kharas,The Emerging Middle Class in Developing CountriesBrookings Institution (World Bank Conference, 2011)
- ^"Fact Sheet: Gini Coefficient"(PDF).Source: The World Bank (2004) and Census and Statistics Department (2002).Legislative Council Secretariat Hong Kong. Archived fromthe original(PDF)on 3 March 2016.Retrieved1 August2007.
Note: The Gini coefficient in this datasheet is calculated on a scale of 0 to 1 and not 0 to 100. Hence, on a scale of 100 India's Gini coefficient (1999-2000) was 32.5 rather than 3.25
- ^Gehring, Keith; Kulkarni, Kishore G (2008)."Economic growth and income inequality in India"(PDF).GITAM Journal of Management.
- ^Datt, Ruddar; Sundharam, K.P.M. "27".Indian Economy.pp. 471–472.
- ^Comparing Indian states and territories,CEIC,The Economist,(June 2011).
- ^"Development Policy Review".World Bank.
- ^Sachs, D. Jeffrey; Bajpai, Nirupam; Ramiah, Ananthi (2002)."Understanding Regional Economic Growth in India"(PDF).Working paper 88. Archived fromthe original(PDF)on 1 July 2007.
- ^Kurian, N.J."Regional disparities in india".Archived fromthe originalon 1 October 2005.Retrieved6 August2005.
- ^"GINI index (World Bank estimate) | Data".data.worldbank.org.Retrieved23 July2020.
- ^ab"Economic survey of India 2007: Policy Brief"(PDF).OECD.Archived fromthe original(PDF)on 6 June 2011.
- ^"India's Quintile 5 own 45% of the income".livemint.in.December 2016.
- ^"India Demographics—Income".imrg.org.Archived fromthe originalon 27 August 2021.Retrieved27 August2021.
- ^"Times of India— Number of Taxpayers".timesofindia.com.
