You Are Not Middle Class - The Income Distribution of India - FutureIQ
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- Опубликовано: 1 авг 2024
- Income and wealth distribution in India. If you think you're middle class or it takes a tremendous amount of wealth to become the top 1% of India by income, chances are, you're wrong by a huge margin. This is because of the lack of information about the wealth distribution in India.
To understand whether India is a rich country or poor, we need to consider the average family income, what exactly are middle class and many such things. That's why, in this FutureIQ episode, we decided to break down the actual data for you and help you understand the reality of the unequal wealth distribution in India.
Hope you enjoyed FutureIQ by Navin Kabra and Shrikant Joshi. Do hit us up on Twitter:
@ngkabra / ngkabra
@shrikant / shrikant
Listen it on the podcast provider of your choice: tapthe.link/FutureIQRSS
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Chapters:
00:00 Introduction
00:55 The background
02:43 Facts
03:23 The average
06:10 The real India
07:15 The current state
09:04 Big cities
10:10 More facts
11:10 Loans
14:30 Middle class
16:00 Poverty
18:28 Objections
20:12 The poverty line
21:08 Key takeaways
#futureIQ #realitycheck
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In per capita Income, India’s position is 139 out of 200, while in GDP her position is 4th or 5th.
Gdp just isn't a factor of nation growth...most of india wealth is in the hands of ambanis, adani
@@Truth_seeker-bl5mi That's how capitalism works .Those who are hardworking , smart , talented ,ambitious should allowed to be rich and successful . Rest of the average people can maintain basic decent life .
Sometimes these numbers makes us feel so grateful for what we have
You spoke the reality of India. Hats off to you 😊
Thanks for the appreciation
I wonder why this channel is so underrated. Thanks guys to put out these well researched videos with a simple presentation. I am sure with time one day this channel will get great pupularity that it deserves. All the best and keep up the good work.
Thank you so much for the kind words, @DurgeshSharma-oz2xb! We believe in the notion of "Karmanyevaadhikaaraste" - we'll keep making these episodes and then... whatever happens, happens! :)
- Shrikant
There is a lot of issue in this video. There are many workers who don't get paid directly to the bank. In fact there are crores of people who work in the unorganised sector and get paid in cash. Now include all the small shopkeepers who take cash and don't account that in their taxable income.
Even people who accept Google pay and other means would occasionally say that there is some issue with the network and they accept cash this is a very normal scenario in India.
Still , they don't a any stable source of income . They don't make any meaningful money .
All of that is accounted for during the data collection for this survey
-navin
@@TheFutureIQ i am sure there is at least 2 crore people who earn more than 10 lakhs and dnt pay taxes due to the cash system. Not to mention millionaires who declare themselves as farmers and take advantage of the tax system
This is wrong at so many levels .. the practioners like doctors, lawyers and small businessmen do not report the right income ..
Take survey of top 50000 and lowest 1 lakh people in India. We will come to know the real India.
It is not income
It is income minus needs (expenses) consumptions
you will be filthy luxurious with 1.5 lakh in a suburb , in Gurugram, this just means a decent survival
Gurugram suburb?
& you will not be able to make 1.5 lakh in suburb, so whereever you live, you will be poor in terms of income - expenses, however it can be said that in urban areas, you will have better lifestyle, that's why you have more expenses.
@@ModernStupidity-qm3rj Most of the middle class people living in delusion that they middle class when they are actually privileged rich class . Top 5 percent richest household expenditure in this country around 20k per month .
@@debanikgoswami4834 exactly
Mind boggling numbers , you guys open up our minds .
Thanks @drvasu2000. That's what we try to do every epidode.
Now.Indian society clearly in two sectoona..the super rich and 80% l8ving on freebies and this is "gujarat" model!
The intention of anchor is good- to represent most of us ignorants!
But too much interventions affect the flow of interview. Easy please
Great eye opening episode... everyone in India describe themselves as middle class...very funny when it's only 3%
Yes... Even I used to think that until I saw the data that resulted in this episode. -@Navin
1 % means 25 lack families.....
i am viewer from nepal. i am shocked from this data. imagine all of india earning rs500k what would be the gdp?
Nice job of competently covering a huge range of topics. Viewer request: Can you do a piece of the amount of tax money paid by each state to the center versus the central investment flow back to the states?
Thanks Arvind. Have asked an economist to look into this and he's promised to do that in August
-navin
Fantastic explanations. Amazing numbers. How could I get access to this data set? :)
A majority of the data used in this episode was sourced from publicly available datasets such as "Our World In Data", Statista, and the Indian Census Survey IIRC. I'll tag Navin and get him to list out specific datasets when he has a moment. :)
- Shrikant
This Episode is largely based on this article from my substack . The Appendix gives sources of the data.
The bulk of the data has come from the "ICE 360°" Survey carried out by PRICE . Unfortunately, PRICE’s ICE 360° Survey no longer appears to be online. However, LiveMint had written a series of 16 articles based on the data in the report. You can access all the 16 articles via this page: . It contains most of the data I used in my article (although there were a few data points that I got from the original reports.)
-@Navin
India 1 and India 2, what the business men call, has a big divide. We should look at numbers with respect to India 1. In that scenario middle income will be drastically different!
But the conclusions in this video are humbling and welcoming.
You're right, Yogesh. Depending on what analysis you're doing, it makes sense to focus on India 1 or India 2 or India 3 or all of India. But the important thing is to be aware of the fact that you're focusing on a subset: most people think of India 1 without realizing that it is a tiny fraction of all of India.
Per capita income and per capita cost in cities is very different than in rural, but the quality of life might be better in rural.
Wow!
Middle Income was not covered. That is the true *economic* middle class. Would have shown the people thinking that they are the "economic middle class" the reality.
Plus Expenses in Rural areas near Zero
I have been to my village regularly and observed their cost of living is also very low. They purchase cloths in special occasion. For food and house purchase is almost nill as they eat veggies mostly grown in their backyards. So yes poor always doesn't meant poverty.
I agree , people in village live modest life that doesn't mean they are poor.
This is called gaslighting
Can you please share the source of this study.
Link for the article, Navin's friend wrote?
The group that you talked about would be called "middle income", not middle class. The middle class is more of a social group, than an income group. Though there is no proper definition of the 'middle class'; a middle class person or family would generally be categorized by their ability to be able to afford a certain level of comfortable living, participating in certain types of cultural activities, their education, linguistic skills, types of occupation they the opt for, etc. Thus even certain people in the top 1% may still fall in the "middle class" category, even when they are part of the higher income group. A person's income group and class group may not necessarily be identical.
Middle class people living in a bubble . They don't realize how poor India is . If your household expenditure is around 20k per month, you are among the top 5 percent richest households . Higher education is still a privilege for a large number of people . Many students couldn't complete higher education due to poverty .
Bro bang on!
It is so hard to accept your own privileges na
We don't realise how poor india actually is
It is difficult to make correct income estimation of Indians . In another research (PRICE) it is found that 31 percent population of Indians are now middle class .
This episode was based on PRICE data (from 2016). And the key point is this: most people who are in the top 10 percent think of themselves as "middle class" even though they are clearly rich.
-navin
Well agricultural income is tax exempt so income tax payers is not correct parameters to determine top 1,10, 20 percent of population.
Let's include PPP as well. Because location will give you higher income but you cannot go to villages for daily needs purchase
u deserve more subs
Remove UP and Bihar - two populous states with lowest per capita and the average charge drastically.
To make a country better.
Remove corruption.
Strong law and order
And create jobs
Create jobs
Create jobs
This is where I disagree anyone who has any kind of business be it a little fruit selling stand or pakora selling stand earns more than 5 lakh. Across the board people hide their income. None of them lay tax . I know many in my own family, What you are quoting is official data. That’s why reality in India in terms of income is way above the official data.
Middle class people living in a bubble . They don't realize how poor India is . If your household expenditure is around 20k per month, you are among the top 5 percent richest households . Higher education is still a privilege for a large number of people . Many students couldn't complete higher education due to poverty .
@@debanikgoswami4834 that’s a lie even poorest of poor in my village doesn’t care for 500rs per day kind of labor work. That tells you where the reality is in terms of wage. India has parallel black unaccounted economy of same size as real. Btw 20k expenditure in village is huge amount in metros it’s nothing. I repeat nobody who has any kind of entrepreneurial activity be it it selling fruits to selling anything makes less than 6 lakh/ annum. People have this tendency of randirona. Even first ac trains and plane tickets are no longer available if you plan too late. I notice even in planes labor class traveling. This is leftist drama that everybody is in penury. Reality is different if I can find farm labor for 500 rs per day in villages then people are way better off than they will make you think. Modi has really brought people out of extreme poverty. It’s another matter when good time comes people demand more and they should. But things are way way rosier than these leftist poverty porn monologue writers will have you believe.
ohh yeah oh yeah
I remember I was part of that twitter poll, and was drastically wrong too. :P
Haha.
I was drastically wrong too! -@Navin
I’d like to know why India is so dirty despite their economic progress?
He doenst know lot of them dont disclose their income .So they dont pay looks very naive his explanation .These surveys need more parameters like whats their buisness and whats their asset etc then u will know whats the reality
India population backbone is middle class the top rich businessman,scammers, are all in minority maybe less than 5 oercent
This is such an underrated channel
Thank you. Hopefully it will get correctly-rated soon 😂 -navin
@@TheFutureIQ Best wishes ♥️
Q1:- Sir Bharat me Bottom 20% Log Kitna kamate hai? ( Per Month/ Per Year )
Q2:- Sir Bharat me 20% se 80% Log Kitna Kamate hai? ( Per Month/ Per Year )
Q3:- Sir Bharat me Top 20% Log Kitna kamate hai? ( Per Month/ Per Year )
In 2016 the numbers were:
- Bottom 20% average monthly household income was approximately ₹7k per month
- Top 20% average monthly household income was approximately ₹30k per month
- Average monthly household income of people in the middle was approximately ₹12k per month
Wealth required to enter 1% club is $ 175,000 including value of primary residence (Knight Frank Wealth Report 2023). Avg. Income required to enter 1% club is 90k/pm. Median Income for 1% is 70k/pm. Avg. Income for India 15k/pm. Median income is 13k/pm. Please don't mix Income and Wealth.
You're right, Mohan. Sorry about mixing up wealth and income. (However, this doesn't change the primary point; that most of us (i.e. the kind of people viewing this video) are in the top 1% of households, whether you count it by wealth or income.)
Suddenly, I am feeling inclined towards socialism.
I am also leaning towards centrism . Middle class people living in a bubble . They don't realize how poor India is . If your household expenditure is around 20k per month, you are among the top 5 percent richest households . Higher education is still a privileged for a large number of people . Many students couldn't complete higher education due to poverty .
@@debanikgoswami4834 Rightly said, middle class is living in a bubble. But what is centrism? Like French policy?
Give your data source.
Data sources are listed here (in the Data Sources section in the appendix):
futureiq.substack.com/p/misconceptions-about-income-distribution
-navin
You aren’t accounting unorganized sector and black money which would be quite a lot
The collectors of this data accounted for the fact that people hide their income, and used various techniques to estimate the magnitude of this, and corrected for it.
-navin
Have you considered black money 🤔?
Black money - due to its very definition - doesn't get accounted for and therefore cannot (and does not) factor into this particular discussion. It's an entirely different topic with an entirely different set of hypotheses, observations, and conclusions. It goes beyond the scope of this particular discussion and, pehaps, maybe even our expertise. :)
- Shrikant
Actually, the collectors of the data (that this episode is based on) accounted for the fact that people hide their income (resulting in black money), and used various techniques to estimate the magnitude of this, and corrected for it.
-navin
Links please
There are references to the sources in the video description. Please take a look.
-navin
@@TheFutureIQ Thanks for the response, I did, and I see that there are only links to other videos of the channel, both your twitter accounts and timestamps..
Srikanth your crosstalk and expressions are very irritating. Could you please stop it and make the videos more effective?
Great feedback, thanks! I'm always open to improving myself, so yeah, I'll definitely take your comments under advisement. :)
And, while I work on curbing my enthusiasm on the video episodes, you might want to check out the audio version of the series and add it to your podcast player . Here's a handy link: tapthe.link/FutureIQRSS
- Shrikant ❤
Don't miss out on the panwalla who makes lakhs and no tax. Enough of business men out of the tax network.
These percentages are not true
The collectors of this data accounted for the fact the people hide their income, and used various techniques to estimate the magnitude of this, and corrected for it.
-navin
Anchor should calm down!
I hate achor😤
This fellow seems ignorant about India and Indian poor classes.😢
Sir my father is earning 1 lakh per month he is in 1% for sure 😊❤
Yes but not the family.
Lucky for u.
How many members in your family?If there are four members then the per capita income is just Rs 25000 per month.
They sound comical 😂
Overpopulation issue of India
If you remove the people who are getting free Ration then compute the % , India has 140 crore people and 1% of India is a very skewed base that way. Remove the 80 crore people who get free Ration then do an objective analysis. So that people don’t get cocky if they just have a job. Other thing if you can’t sustain your job or buy a house for each of your kids then don’t bring them to this life or else they will not be able to compete with 10 crore future kids who will get 100/100 in each exam and no one can create these many IT or high paying jobs in India. Parents of 1990s and later are morons who brought kids to this insanely populated country without having enough money for their future.
Not easy to do science young boy.
this is 'amrit kaal' ushered in by Mr Vishwabandhu PM
Overacting of the anchor ruined the episode..nonsense guy
Yes I also hate this
take a chill pill
Many many people especially in Sub rural areas UNDER PLAY their income 😮
The people who collected this data, used various techniques to estimate the undercounting and corrected for it.
-navin
My simple research says around 3.6 lakh per month brings you in top 1% in India. But I am afraid this may be misleading. For real numbers outliers I would say stop 4-5 lakh businessmen should be excluded from this calculation then what you are quoting 90000 / month will make sense.
Media people can earn but you will have to the dalali like Ravish Kumar
It freshers dont get 90k per month😂