Income in India discusses the financial state in India. With rising economic growth and prosperity, India's income is also rising rapidly. As an overview, India's per capita net national income or NNI was around Rs. 98,374 in 2022-23.[1] The per-capita income is a crude indicator of the prosperity of a country. In contrast, the gross national income at constant prices stood at over 128 trillion rupees.[2] The same year, GRI growth rate at constant prices was around 6.6 percent. While GNI and NNI are both indicators for a country's economic performance and welfare, the GNI is related to the GDP or the Gross Domestic Product plus the net receipts from abroad, including wages and salaries, property income, net taxes and subsidies receivable from abroad. On the other hand, the NNI of a country is equal to its GNI net of depreciation.
GDP per capita, GNI per capita and NNI per capita of India[3][4]
Year
At current prices (INR)
At 2011-12 prices (INR)
GDP per capita
GNI per capita
NNI per capita
GDP per capita
GNI per capita
NNI per capita
2023-24
211,725
208,633
184,205
124,600
122,766
106,744
2022-23
194,879
192,201
169,496
116,216
114,478
99,404
2021-22
172,422
170,392
150,906
109,762
108,345
94,054
2020-21
146,301
144,334
127,065
100,981
99,578
86,054
2019-20
149,701
148,261
132,115
108,247
107,191
94,270
2018-19
142,328
140,804
125,883
105,526
104,377
92,241
2017-18
130,061
128,655
115,224
100,035
98,925
87,586
2016-17
118,489
116,070
103,870
94,752
93,639
83,003
2015-16
107,342
106,096
94,797
88,617
87,565
77,659
2014-15
98,405
97,241
86,647
83,091
82,107
72,805
2013-14
89,796
88,678
79,118
78,348
77,370
68,572
2012-13
80,519
79,573
70,983
74,600
73,722
65,538
2011-12
71,610
70,980
63,462
71,610
70,980
63,462
Estimates
The International Labour Organization in its report India Employment Report 2024: Youth Employment, Education and Skills states that the average earning of regular salaried workers (Rs 19,010) was considerably higher than those of self-employed (Rs 11,973) and casual (Rs 8,267) workers in 2022.[5]
Average monthly earnings in 2022 (rupees, nominal value)[6]
Employment
Rural
Urban
Total
Self-employed
10,201
17,991
11,973
Regular salaried
15,177
21,826
19,010
Casual
7,997
9,749
8,267
Number and share of employment (aged 15+) in 2022[6]
Employment
Number (million)
Share
Self-employed
304.1
55.8%
Regular salaried
118.1
21.5%
Casual
122.2
22.7%
India's nominal per capita income was US$1,670 per year in 2016, ranked 112th out of 164 countries by the World Bank,[7] while its per capita income on purchasing power parity (PPP) basis was US$5,350, and ranked 106th.[8] Other estimates for per capita gross national income and gross domestic product vary by source. For example, India's average GDP per capita on PPP basis in 2009, according to The Economist, was US$5,138, with significant variation among its states and union territories. Goa had the highest per capita PPP GDP at US$14,903, while Bihar the lowest with per capita PPP GDP of US$682 as of 2015[9] In rupee terms, India's per capita income grew by 10.4% to reach Rs.74,920 in 2013–14.
While India's per capita incomes were low, the average household size and consequent household incomes were higher. India had a total of 247 million households in 2011, with an average of about 4.9 people per household, according to Census of India.[10]
Estimates for average household income and the size of India's middle-income households vary by source. Using World Bank's definition of middle-income families to be those with per capita income between $10 and $50 per day,[11] the National Council of Applied Economic Research[12] of India completed a survey and concluded there were 153 million people who belonged to middle income group in 2006. In contrast, Meyer and Birdsall and Tim Light used a different survey and estimated the number of Middle-Income population to be about 70 million in 2009–2010.[13] These groups, as well as the World Bank, estimated in their 2011 reports that if India's economy continues to grow per projections, India's middle income group would double by 2015 over 2010 levels, and grow by an additional 500 million people by 2025. This would make it, with China, the world's largest middle income market.[14]
Compared to other countries, income inequality in India is relatively small as measured by Gini coefficient. India had a Gini coefficient of 32.5 in the year 1999- 2000;[15] India's nominal Gini index rose to 36.8 in 2005, while real Gini after tax remained nearly flat at 32.6.[16]
Gini coefficient of India and other countries according to the World Bank (2018). Higher Gini Index means more income inequality.
As in other countries, residents of Indian cities have a higher per capita income and standard of living than rural residents. Towns and cities make more than two-thirds of the Indian GDP, even though less than a third of the population live in them.[23]
The Economic Survey of India 2007 by OECD concluded that:
"At the state level, economic performance is much better in states with a relatively liberal regulatory environment than in the relatively more restrictive states".[23]
The analysis of this report suggests that the differences in economic performance across states are associated with the extent to which states have introduced market-oriented reforms. Thus, further reforms on these lines, complemented with measures to improve infrastructure, education and basic services, would increase the potential for growth outside of agriculture and thus boost better-paid employment, which is a key to sharing the fruits of growth and lowering poverty.
Statistics
Percentage share in total national household disposable income by Class (2016)[24]
Quintile 5 (Top 20%) (44.9%)
Quintile 4 (22.1%)
Quintile 3 (15.2%)
Quintile 2 (10.8%)
Quintile 1 (Bottom 20%) (7%)
Distribution of Annual Household Income in India (in pounds/annum)[25]
Gross domestic product (GDP) is a monetary measure of the market value of all the final goods and services produced and rendered in a specific time period by a country or countries. GDP is often used to measure the economic health of a country or region. Definitions of GDP are maintained by several national and international economic organizations, such as the OECD and the International Monetary Fund.
In ancient times, Maldives were renowned for cowries, coir rope, dried tuna fish, ambergris (maavaharu) and coco de mer (tavakkaashi). Local and foreign trading ships used to load these products in the Maldives and bring them abroad.
Per capita income (PCI) or average income measures the average income earned per person in a given area in a specified year.
A variety of measures of national income and output are used in economics to estimate total economic activity in a country or region, including gross domestic product (GDP), Gross national income (GNI), net national income (NNI), and adjusted national income. All are specially concerned with counting the total amount of goods and services produced within the economy and by various sectors. The boundary is usually defined by geography or citizenship, and it is also defined as the total income of the nation and also restrict the goods and services that are counted. For instance, some measures count only goods & services that are exchanged for money, excluding bartered goods, while other measures may attempt to include bartered goods by imputing monetary values to them.
In economics, income distribution covers how a country's total GDP is distributed amongst its population. Economic theory and economic policy have long seen income and its distribution as a central concern. Unequal distribution of income causes economic inequality which is a concern in almost all countries around the world.
The standard of living in India varies from state to state. In 2021, extreme poverty was reduced to 0.8% and India is no longer the nation with the largest population living in poverty.
The gross national income (GNI), previously known as gross national product (GNP), is the total domestic and foreign financial output claimed by residents of a country, consisting of gross domestic product (GDP), plus factor incomes earned by foreign residents, minus income earned in the domestic economy by nonresidents.
An emerging market is a market that has some characteristics of a developed market, but does not fully meet its standards. This includes markets that may become developed markets in the future or were in the past. The term "frontier market" is used for developing countries with smaller, riskier, or more illiquid capital markets than "emerging". As of 2006, the economies of China and India are considered to be the largest emerging markets. According to The Economist, many people find the term outdated, but no new term has gained traction. Emerging market hedge fund capital reached a record new level in the first quarter of 2011 of $121 billion. Emerging market economies’ share of global PPP-adjusted GDP has risen from 27 percent in 1960 to around 53 percent by 2013. The ten largest emerging economies by nominal GDP are 4 of the 9 BRICS countries along with Mexico, South Korea, Indonesia, Turkey, Saudi Arabia, and Poland. The inclusion of South Korea, Poland, and sometimes Taiwan are questionable given they are no longer considered emerging markets by the IMF and World Bank If we ignore those three, the top ten would include Argentina and Thailand.
Poverty in India remains a major challenge despite overall reductions in the last several decades as its economy grows. According to an International Monetary Fund paper, extreme poverty, defined by the World Bank as living on US$1.9 or less in purchasing power parity (PPP) terms, in India was as low as 0.8% in 2019, and the country managed to keep it at that level in 2020 despite the unprecedented COVID-19 outbreak. According to the World Bank, India experienced a significant decline in the prevalence of extreme poverty from 22.5% in 2011 to 10.2% in 2019. A working paper of the bank said rural poverty declined from 26.3% in 2011 to 11.6% in 2019. The decline in urban areas was from 14.2% to 6.3% in the same period. The poverty level in rural and urban areas went down by 14.7 and 7.9 percentage points, respectively. According to United Nations Development Programme administrator Achim Steiner, India lifted 271 million people out of extreme poverty in a 10-year time period from 2005–2006 to 2015–2016. A 2020 study from the World Economic Forum found "Some 220 million Indians sustained on an expenditure level of less than Rs 32 / day—the poverty line for rural India—by the last headcount of the poor in India in 2013."
This article includes several ranked indicators for Chile's regions.
Though resource rich, Bolivia is one of the poorest countries in Latin America. In the 1980s the tin market collapsed, the currency dived, and inflation soared. Austerity measures restored some confidence, but at the cost of widening inequality. This was exacerbated when, at the behest of the US, coca growing, a prime source of income for the poor, was shut down. There are also tensions over natural gas deposits, perhaps Bolivia's last remaining resource. And while GDP and GNI have both grown significantly since 2000, severe disparities exist both regionally and ethnically. UNICEF reports that women and children are the most vulnerable group. In 2002, the percentage of the population living below the poverty line was 82% in rural areas and 54% in urban areas. The departments with the most poverty are Potosi, Chuquisaca and Pando, while Santa Cruz and Tarija have the least.
Wealth is the total sum value of monetary assets and valuable material possessions owned by an individual, minus private debt, at a set point in time.
↑ "Fact Sheet: Gini Coefficient"(PDF). Source: The World Bank (2004) and Census and Statistics Department (2002). Legislative Council Secretariat Hong Kong. Archived from the original(PDF) on 3 March 2016. Retrieved 1 August 2007. Note: The Gini coefficient in this datasheet is calculated on a scale of 0 to 1 and not 0 to 100. Hence, on a scale of 100 India's Gini coefficient (1999-2000) was 32.5 rather than 3.25
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