The monthly income of a middle class family in India is highly variable and can depend on a number of factors such as profession, city, and family size. According to the Global Household Wealth Report of 2018, the median income of a middle class family in India ranges anywhere between Rs 18,000 and Rs 1,25,000 per month, depending on the location and profession.
In major cities like Delhi and Mumbai, the median monthly income of a middle class family would typically range between Rs 25,000 and Rs 1,00,000. In contrast, the monthly income of a middle class family located in a Tier 2 or 3 city would be between Rs 15,000 and Rs 50,000.
Furthermore, professions such as business, IT, Teaching, and Engineering tend to earn higher than most others, thus increasing the monthly income of middle class families.
What is India’s average income?
According to the International Monetary Fund’s World Economic Outlook of April 2021, India’s GDP per capita at Purchasing Power Parity (PPP) in 2020 was $7,004.
India is the world’s sixth-largest economy and second-most populous country in the world with a population of 1. 35 billion people. As of 2020, India’s per capita gross domestic product (GDP) was around $2,170.
However, due to the country’s high population and large number of people living in poverty, India’s nominal GDP per capita is relatively low compared to other countries.
Although India has made significant advances in poverty reduction, the country is still home to one of the world’s largest number of extremely poor people. The United Nations Development Programme (UNDP) has estimated that 21 percent of the population lives below its poverty line.
Income inequality is also an issue in India, with the richest 10 percent of the population controlling over three-quarters of its wealth. Consequently, India’s average income — which is the mean of all people in the country — is significantly lower than its per-capita GDP.
According to Global Finance Magazine, the average annual income of an Indian citizen was $1,172 as of 2019.
What salary is upper middle class?
The exact definition of an upper middle-class salary can vary depending on the individual’s lifestyle, age, location and other factors. Generally, however, the upper middle-class can be defined as those earning anywhere from two-thirds to double the median household income.
In 2019, this range would be between roughly $50,000 and $200,000 per year. Of course, this range can also vary significantly depending on the area or city you live in. For example, in cities with a higher cost of living such as San Francisco or New York, the upper middle-class salary range might start close to $200,000 per year.
Conversely, in small towns or rural areas, the upper middle-class range might start close to $50,000 per year.
How much money do you need to live comfortably in India?
The amount of money you need to live comfortably in India depends on where you live, what standard of living you’re looking for, and your personal financial situation. Generally speaking, to live comfortably in India, you’ll need around 8-10 lakhs per year, depending on whether you’re living alone or with family.
This covers basic things like accommodation, food, medical expenses and travel.
Accommodation generally accounts for the biggest expense in India, with rents ranging from around 5,000 to over $20,000 per month in metropolitan cities like Delhi, Mumbai and Bengaluru. However, it’s possible to get cheaper accommodations outside the major cities, and in some areas, you may even be able to rent a place for as little as $150 per month.
Food is also a large expense in India, although it’s possible to eat fairly cheaply. If you’re able to stick to local, home-cooked meals, you should be able to eat for around $25-50 per month, depending on where you live.
However, if you’re eating out regularly or buying from supermarkets, you’re likely to spend significantly more.
Medical expenses also need to be taken into consideration when calculating the cost of living in India. Healthcare is generally affordable for basic treatments, but major medical emergencies can be very expensive.
Having health insurance is essential if you want to ensure that all your medical bills are covered.
Finally, you’ll also need to factor in other expenses such as transportation, entertainment, and clothing. In general, all of these should be covered within your 8-10 lakhs per year budget, although it all depends on the lifestyle you’re hoping to achieve.
How much is an apartment in India?
The cost of an apartment in India depends on its location, size, quality of facilities and amenities, as well as its age. In general, apartments in major metropolitan cities such as Mumbai, Delhi, Chennai and Kolkata can be quite expensive, often ranging from around 5 lakhs (or $7,400 USD) up to 10-15 lakhs (or $14,600–21,900 USD).
Smaller cities usually have more affordable options, with apartments costing anywhere between 1-5 lakhs (or $1,450–7,400 USD). However, in general, the cost of an apartment in India tends to depend on its particular characteristics and amenities, as well as its location.
What is the average Indian monthly expenses?
The average monthly expenses of an Indian household vary widely based on factors such as location, family size, lifestyle and income. Generally speaking, for a family of four in a mid-sized city, the average monthly expenses can range from Rs.
25,000 to Rs. 50,000. This amount typically includes rent, food, clothing, fuel, utilities, education and miscellaneous expenses.
Rent is typically one of the biggest monthly expenses and can make up a large portion of the total. This is especially true in urban areas, where real estate prices are high. Average rent for a three-bedroom apartment in a mid-sized city can range from Rs.
10,000 to Rs. 20,000.
Food is another significant expense, comprising of daily groceries, eating out, and other food-related expenditures. The average grocery bill per month for a family of four is around Rs. 7,000. Eating out expenses are dependable on lifestyle choices.
Other major monthly expenses include clothing, fuel, utilities, education and miscellaneous expenses such as medical, travel and entertainment. Store-bought clothing averages around Rs. 4,000 per month, fuel prices are around Rs.
1,400 for a standard car and utility bill such as electricity and water likely average around Rs. 3,000. Education expenses for children such as tuition, books and extracurricular activities can range from Rs.
2,000 – Rs. 10,000 per month, depending on the quality of education. Finally, medical and other variable monthly expenses can average around Rs. 5,000 – Rs. 10,000.
Overall, the average Indian monthly expenses vary drastically depending on individual factors such as income, lifestyle and geographic location.
What is the income of top 10% in India?
The exact income of the top 10% of households in India is difficult to quantify. However, estimates suggest that an individual or household in the top 10% income bracket would have an annual income of somewhere between 18-20 lakhs per annum.
This is significantly above the national annual per capita income of 1. 147 lakhs, which was reported in 2017-18 by the Ministry of Statistics and Program Implementation.
The top 10% of households in India also often include very wealthy individuals. To calculate their income, one would need to consider capital gains, stocks, real estate, investments, and other sources of wealth.
It is likely that some of these households have an annual income in excess of 1 crore.
In terms of absolute income, the top 10% of households account for a sizeable share of the nation’s total income. In 2018, the top 10% of households earned nearly 44% of the nation’s total annual income.
What is the top 5 percent income in India?
The top 5 percent of earners in India make up the country’s high-income population. According to a 2017 report by the World Poverty and Income Insights, the top 5 percent of income-earners in India has an annual income of at least Rs.
45 lakh (US$64,000).
In more detail, the World Poverty and Income Insight report found that the cumulative income of the top 5% income bracket in India is over Rs. 1. 82 crore (US$263,000). The top 5% earners form 10% of the active population in India and account for 35.
3% of the cumulative income earned.
The report also found that the top 10% of earners in India make Rs. 23. 9 lakh (US$34,500). This was nearly double the figure reported in 2014. This significant growth in the top 10% of earners reflects rising incomes among the wealthy sections of India’s population.
Furthermore, the top 5% of earners form substantial portions of the income-brackets in India. In urban India, the top 5% earners make up 36. 5% of the cumulative income earned, while in rural India, they form 30.
2%. This shows that urban earners have higher incomes than their rural counterparts.
In conclusion, the World Poverty and Income Insight report has found that the top 5 percent of income-earners in India have an annual income of at least Rs. 45 lakh (US$64,000). This income group makes up a substantial portion of the cumulative income in India, and their incomes have been rising significantly in recent years.
How much does an upper middle class Indian earn?
The exact amount of income earned by an individual in the upper middle class in India can be difficult to fully define because the definition of “upper middle class” can vary from place to place. Generally speaking, the upper middle class in India is people who earn between INR 400,000 to INR 750,000 ($5,400 – $10,100 USD) per year.
The amount an individual in this class earns depends largely on factors such as profession, years of experience, and location. For example, a doctor or other professional in a larger city may earn closer to INR 750,000 ($10,100 USD), while a university lecturer in a smaller city may earn closer to INR 400,000 ($5,400 USD).
Additionally, having a higher educational background and more experience in a particular field will potentially increase one’s earning power in the upper middle class.
Who belongs to upper class?
Upper class generally refers to people who have the highest social status, highest economic wealth, the most leisure time and substantial inherited wealth. Generally, these people are considered to have higher social status because they often have better access to resources and have the highest levels of economic wealth.
They often have the greatest amount of leisure time because they are not bound by the same financial obligations that other social classes may have. Furthermore, they also often have large inherited wealth, which is usually passed down through generations.
In this sense, upper class individuals tend to be highly influential in areas such as politics, business, art, and science.
Is India upper middle income?
Yes, India is considered an upper middle-income country by the World Bank. India’s Gross National Income (GNI) per capita is estimated to be around $2,170 as of 2020, making it an upper middle-income economy.
India has the second-largest population in the world and is categorized as a developing country by the United Nations (UN). India’s economy has grown rapidly since liberalization in 1991 and has become the fastest-growing major economy in the world, with annual growth rate of around 7.
5% from the 2010–11 to 2015–16 fiscal years. The economy has seen significant growth in the service sector, accounting for 55% of the country’s GDP in 2016, up from 15% in 1990. The country is also the world’s fourth-largest economy and employment generator, making it an attractive market for foreign investors.
Can a middle class Indian become rich?
Yes, a middle class Indian can become rich. In fact, many people from middle class backgrounds have gone on to achieve great levels of financial success. It starts with having a strong vision, a clear plan of action, and the determination to see it through.
There are a variety of ways to become rich, and it depends on what interests and goals you have. You could start a business, invest in the stock market, or learn how to trade currencies. Whatever route you take, it’s important to seek sound financial advice and guidance to ensure you make the right decisions.
It’s also important to have realistic expectations and understand that it may take time, hard work, and dedication in order to get yourself on the path to wealth. The most important thing to remember is that success is achievable and anyone can realize their dreams and become rich.
Resources
- What incomes define upper, middle and rich classes in India?
- Nearly 1 in 3 Indians middle class, to double in 25 years: Report
- One out of every three Indians ‘middle class’; to double by 2047
- Middle-income households account for largest chunk of India’s …
- Stats of India on Twitter: “Who exactly is Indian middle class …
