Now Indians are earning more and more

This is something that would make you happy. In the barrage of news related to price rise, poverty and rottting of food grains, the latest study proves that now Indians are earning more. According to study conducted by Delhi based National Council of Applied Economic Research (NCAER) ,the growing economy has spun a wheel of fortune for Indians, with high incomehouseholds outnumbering those in the low category for the first time at the end of 2009-10.

According to Dr.Rajesh Shukla, who led this study,India has 46.7 million high income households as compared to 41 million in the low income category.For the first time, the number of high income households is set to exceed the number of poor households in 2009-10," Shukla said, adding that the middle income class continued to grow. Reacting to results of study,noted journalist and writer,Mr.Aroon Kumar said," it is a great news that all Indians should celebrate. But,government must ensure that even poor also enjoy the fruits of liberlisation."

Households earning less than Rs 40,000 per annum (at 2001-02 prices) are dubbed as low income, whereas those with earnings over Rs 1.80 lakh fall in thehigh income category.
Those earning between Rs 45,000-Rs 1.80 lakh per annum are considered middle income households, whose number surged to 140.7 million out of the total of 228.4 Indian million families at the end of 2009-10.

Thus, the NCAER survey confirms that 62 per cent of Indian households belong to the middle class, which is the target of most consumer goods firms.

"The wheel of fortune continues to spin in India, with each level of household income set to move a notch higher by the end of the decade," the survey on spending and earning patterns since 1985-86 said.

The Indian economy grew at above 9 per cent between 2005-06 and 2007-08. After slowing down in 2008-09 and 2009-10, it is projected to expand at 8.5 per cent in the current fiscal.

Referring to the middle class, the study said, "Their growing clout becomes even more apparent when one looks at the ownership patterns ofhouseholds goods. Nearly 49 per cent of all cars are owned by the middle class, compared to just 7 per cent by the rich."

Similarly, 53 per cent of all air conditioners are owned by middle class homes and nearly 46 per cent of all credit cards are to be found in thesehouseholds.