Are you lower, middle, or upper class in India?
Jul 28, 2024
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Economic classes in India
Economic classes in India are broadly categorised into various groups based on income, lifestyle, and social status. These classifications are used in various government programs and schemes, including affordable housing initiatives like the Pradhan Mantri Awas Yojana.
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Below Poverty Line (BPL)
Annual income is below Rs 27,000. This group has limited access to basic necessities, heavy reliance on government aid and subsidies.
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Economically Weaker Section (EWS)
Annual income is up to Rs 3 lakh. Group is typically equipped with basic living conditions, and has access to government support for education, health, and housing.
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Low Income Group (LIG)
Annual income is between Rs 3 lakh and Rs 6 lakh. Characterised by a modest lifestyle, basic consumer goods, and limited savings.
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Middle Income Group (MIG I)
Annual income between Rs 6 lakh and Rs 12 lakh. Has improved living standards, access to better education and healthcare, ownership of consumer durables.
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Middle Income Group (MIG II)
Annual income between Rs 12 lakh and Rs 18 lakh. Boasts a comfortable lifestyle, better financial stability and probably has investment in properties.
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High Income Group (HIG)
Annual income above Rs 18 lakh. Characterised by high-quality living, luxury goods, significant savings and investments.
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Other descriptions
People Research on India’s Consumer Economy (PRICE) divides income-earning households into four categories: affluent (over Rs 30 lakhs annually), middle-class (Rs 5-30 lakhs), aspiring (Rs 1.25-5 lakhs), and destitute (below Rs 1.25 lakhs).
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Other descriptions
A 2021 Mastercard Centre for Inclusive Growth report divides Indian households into 'Three Indias': 'Rich India' (top 20%, earning Rs 3,94,271 annually), 'Middle India' (middle 60%, earning Rs 151,651), and 'Poor India' (earning Rs 80,529).
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Consumption and saving patterns
BPL, EWS focus on essentials (food, clothing, shelter) with minimal savings & informal credit. LIG, MIG mix essentials with discretionary spending, education & healthcare, with small investments in gold & real estate. MIG-II, HIG diversify in stocks, mutual funds and properties.
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