Income Of Middle Class Family In India

They do not pay any direct tax.

Income of middle class family in india. The lower income levels of india s middle class have severely impacted cash flow into the informal sector leaving demand in doldrums. However a rural middle class is now emerging in india with some rural areas seeing increasing prosperity. The world bank classifies economies based on gross national income per capita in us dollars calculated using what. Compare your own expense allocation to know where you stand.

Car such as alto and keep it for 15 to 20 years. Family of four earning between 50k and 4 5 lacs a year. We looked at the spending pattern of the average middle class urban indian household and tweaked the formula to make it 60 20 20. As per the imf s world economic outlook for 2020 the per capita ppp adjusted gdp for india was estimated to be us 9 027.

70 indians belong to this class. A family of 4 which can afford to rent a 1 bedroom house in low class areas of the city buy and maintain a two wheeler or entry level hatchback on loan. Lower middle class. You are in the top of the richest households in india.

India became a lower middle income nation from low income in the fiscal year 2009. Now going back to the pew research definition that the middle class is two thirds to two times the median income we get a range of 406 1 232. Loss of these urban salaried jobs is therefore likely to have a particularly debilitating impact on the economy besides causing immediate hardship to middle class households cmie said. As of 2016 about 121 million households in india belonged to the middle income bracket earning a gross annual income between 7 700 to 15 400 u s.

How a family should spend every month here s how much a household income of rs 1 lakh per month should be allocated under different heads.