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Annual Income Of Poorest Indians Tanks 53% In 2020-21, Affluents See 39% Rise: Report
Writer: Devyani Madaik
A media enthusiast, Devyani believes in learning on the job and there is nothing off limits when it comes to work. Writing is her passion and she is always ready for a debate as well.
India, 24 Jan 2022 10:47 AM GMT
Editor : Snehadri Sarkar |
While he is a massive sports fanatic, his interest also lies in mainstream news and nitpicking trending and less talked about everyday issues.
Creatives : Devyani Madaik
A media enthusiast, Devyani believes in learning on the job and there is nothing off limits when it comes to work. Writing is her passion and she is always ready for a debate as well.
The richest 20 percent accounted for 50.2 percent of the total household income in 1995, and their share jumped to 56.3 percent in 2021. On the other hand, the share of the poorest 20 percent tanked from 5.9 percent to 3.3 percent in the same period.
The income of the most deprived quintile (first) plunged 53 per cent since the pandemic hit the country between 2020 and 2021. In contrast, the income of the top 20 per cent wealthiest people surged 39 per cent in the same period.
(The quintile is a statical value, and the first quintile represents 20% of the total population, the lowest fifth of the data).
The data was revealed in ICE360 Survey 2021 conducted by Mumbai-based think-tank People's Research on India's Consumer Economy (PRICE) and cited by The Indian Express.
The survey was conducted in over 120 towns and 800 villages across 100 districts last April and October. It covered around 2,00,000 households were surveyed in the first round and 42,000 in the second.
Two Indias
IE reports that the poorest Indians witnessed the biggest erosion in income, followed by the second-lowest quintile, which lists the lower middle class, who saw their annual income decline by 32 per cent.
Income of the middle-class households eroded by 9 per cent, whereas the upper-middle class and the richest saw their income surge by 7 per cent and 39 per cent, respectively.
Richest Pooled More Income
The report states that the richest people incurred more income per household and as a group in the last five years, compared to the pre-liberalisation period. On the other hand, the poorest saw a significant decline since 1995.
The richest 20 per cent accounted for 50.2 per cent of the total household income in 1995, and their share jumped to 56.3 per cent in 2021. On the other hand, the share of the poorest 20 per cent tanked from 5.9 per cent to 3.3 per cent in the same period.
Between the period 2005 - 2016, the same richest households saw a rise in their income by 34 per cent; the poorest saw a surge of 183 per cent in their household income at an average annual growth rate of 9.9 per cent, the media reported.
Urban & Rural Areas
The poor 20 per cent of urban areas were impacted more in the last two years than the rural. The economic activities halted due to pandemics resulted in the loss of jobs and income in the labour sector and Small and Medium Enterprises (MSMEs).
The population of the poorest in urban ha also gone up by 30 per cent recently, from 10 per cent in 2016, while the rural have a significant fall, dropping from 90 per cent in 2016 to 70 per cent.
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