![]() ![]() Using data from the 2009-10 National Sample Survey, the paper estimated the size of India's middle-class at around 70 million people using a daily per capita income range of $10-50 in 2005 purchasing power parity dollars. The lack of a precise definition has not prevented economists and academics from trying to nail down the middle-class.Ī November 2012 paper (PDF) by the Centre for Global Development, an independent research organisation, defined India's middle-class as that section which has "reasonable economic security in today's globalised world". These returns accounted for just over 28 percent of all individual tax returns filed for the year with an annual salary of at least one rupee. Logic dictates one should look at the income distribution of Indians and zero-in on those in the 'middle'.Īccording to data from the Income Tax Department for the financial year 2017-18, more than 81 lakh tax returns were filed by people falling in the annual salary bracket of Rs 5.5-9.5 lakh, with an average salary of Rs 7.12 lakh. "This is partly for convenience, since data on income are widely available, and partly because income tends to be highly correlated with the other trappings of social class, such as economic security, education levels, and consumer preferences," it added. Senior citizens are a classic example, as they have little to no salary income, but live on their savings or incomes derived from these savings.Īgain, as per the World Inequality Database, the net personal wealth of the middle 40 percent of Indians was just over Rs 3 lakh in 2021.īut let's return to income, which, as per a 2018 paper by the Brookings Institution, is favoured by economists when it comes to defining classes. ![]() What of wealth, which also takes into account stock of assets, in addition to annual income? This can be a key consideration as a greater stock of wealth, or savings ― be it financial or physical ― can help tide over difficult times. The problem, however, is that there is no universal definition of the middle-class ― not just in terms of income thresholds, but even whether income should be used as a parameter. If one were to define the middle-class by income, our lawmakers are unlikely to be in this category. This amounts to an annual income of Rs 27.6 lakh ― more than 16 times India's per capita income, as per the statistics ministry's first advance estimate for 2022-23.Īccording to the World Inequality Database, an annual income of Rs 18.6 lakh or more in 2021 would put an Indian among the richest 1 percent of the country. If the finance minister of the country counts herself among the middle-class, a good argument can be made that some of the richest Indians too will fall in this category.Īccording to PRS Legislative Research, a Member of Parliament (MP) earns Rs 2.3 lakh per month, inclusive of Constituency and office expense allowance. However, the impetus this time around has come from the government itself after Finance Minister Nirmala Sitharaman said on January 15 that she identified herself as a member of the middle-class and understood the pressures it faced.īut just what is the middle-class in the Indian context? This article originally appeared on GOBankingRates.Every year before presentation of the Union Budget, talk of the middle-class crops up in clockwork fashion, as Indians start hoping for some help from the finance minister in boosting their disposable income. To find out how much a middle-class family is earning, GOBankingRates multiplied each median income by 0.67 for the lower limit and by 2 for the upper limit. For this study, GOBankingRates assumed that a middle-class family earns two-thirds to double the median income for a family of its size in its state. Pew Research Center defines middle class as making two-thirds (67%) to double (200%) the national median income. Census Bureau's 2019 American Community Survey data to determine how much a two-, three- and four-person middle-class family earns. Methodology: GOBankingRates found how much the middle class earns in every state by analyzing the U.S. The Top 10 Best Travel Hacks To Save the Most MoneyĬynthia Measom contributed to the reporting of this article. ![]() Looking To Diversify in a Bear Market? Consider These Alternative Investments Nominate Your Favorite Small Business To Be Featured in GOBankingRates' 2022 Small Business Spotlight DenisTangneyJr / Getty Images/iStockphoto WyomingĢ-person family middle-class income range: $49,018 to $146,322ģ-person family middle-class income range: $54,955 to $164,046Ĥ-person family middle-class income range: $64,195.38 to $191,628 ![]()
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