The income levels of Indians have increased phenomenally over last few years and so is the standard of living. The economy is on the rise and India is coming out from being called a third world country to a developing country.
What does this mean? What are the Indian income levels? How much is the income growing year on year?
Â Here are some of the answers based on the survey conducted by CLSA:
- Over 70m households (34% of total) earn Rs. 80,000 to Rs. 18,00,000 per annum
- Six hundred thousand households earn more than Rs. 18,00,000 per annum.
- Households earning between Rs. 80,000 – Rs. 18,00,000 to hit 106m by 2010
- Market researchers believe that household income is massively understated – baggage of the era of controls and usurious taxes
- Independent studies suggest 1.6 million households earn over Rs 40 lakh per annum and about 100,000 people have more than Rs. 4 crore in assets.
- Real Incomes increased by 12%; However, real GDP per capita has grown at 10% over FY02-07.
- 50% of the people have seen incomes rise in the past 12 months; 9% have seen their Incomes decline.
- Of those with income increases, one-third saw a more than 10% rise.
- Average rise in income was lowest in west India at 10% and highest in the east at 18%.
- 63% expect their incomes to rise in the next 12 months; average expected increase is 12.7%
- 83% of people believe that they are better off than 10 years ago 84% expect further improvement in their lives over the next five years
I agree with the independent studies that ‘1.6 million households earn over Rs 40 lakh per annum and about 100,000 people have more than Rs. 4 crore in assets’. Although, the figures may look big, it is the reality. It is estimated that black money floating in the market is more than 40% of our GDP amounting to more than $400 billion. Where is all that money?