Even in the states and the uk. The point is however, unless you're earning more than 60 lakhs a year luxuries like a luxury car and expressive European clothing are also out of your reach
@@mananpandya1397 No buddy only different is MRP grocery.. food and fruits are very cheap in villages and towns and 2nd thing you don't need to travel long so it's reduces petrol expenses
Hm, 700 to 1500 rupees per day. Meaning 21k to 45k monthly income. For a family of 4, it would mean that a monthly income of 84k to 180k would classify as middle class. No wonder the % is so low... Most families will stay in low-income until their children begin earning. And if their children get good jobs, then they could skip the middle inccome and directly enter upper-middle income. I guess, in Indian context, low-middle, middle and upper-middle income categories are all considered as middle class.
Most are lower middle class which means even a small problem in financial and economic stability can ruin them to poor ......u did see what happened after covid ri8?
@@manojramesh4598 not really. No one in my neighbourhood suffered with anything other than the obvious inconveniences of the Lockdown and a deadly virus and majority of them are in the Low-income group. In fact many got richer as they invested in the stock market at the right moment.
@@devilhex2802 u r talking about neighborhood may be u r in rich areas ........u didn't see the people who are working in factories, slums, city borders and Street and how they suffered during lockdown.......... people become rich not because they invested in right time but the pandemic had lot deman on digital content.......so rich got richer......poor got poorer........ nobody invests in poor .......
@@manojramesh4598 dude, I said most in my neighbourhood are low-income (according to this video). Though they should be close to the middle income mark. And yeah, I can guess that construction workers and people in similar jobs would have suffered as all those works were put on a halt. But I didn't see any of them (which was your question). As for investment, I could pass a mean comment, but instead I'd recommend you to do a proper study on how to invest properly. It'll benefit you a lot. Once you learn it, you will understand why people who got into the stock market during the crisis made a lot of money (irrespective of their income class). Of course, the money they made is directly proportional to the amount of money they could and were willing to risk to put in. So they didn't earn in crore, but earning a few lakh rupees in the stock market in an year is still very helpful for people like us. (PS : Since its the stock market, of course many also lost money. These were people who invested before the pandemic and quit during it).
@@devilhex2802 that is what I'm saying......the middle class video is not only about ur neighbour .......its about whole country........ Stop comparing all the people in the country with neighbourhood.........as u r saying "no one in my neighborhood really suffered....." as i was replying the problem of the lockdown for the whole country middle and lower middle class
Well almost all these studies are false to a large extent especially when about India. A large part of the economy is still informal and so the actual money earned by a LOT of people are misrepresented. I knew a chai walla in Pune who lived his life like a low income individual ( small house where he and his 3 employees slept) but he was earning around 3 to 4 lakhs per month. He has 3 daughters two of whom became doctors and he managed to send all of them abroad for studies. He still lives very modestly but earns a ton of money. There are lakhs of such people in India.
That's a statistical outlier. Many have this 'I know one xyz'-syndrome. How many chaiwallahs are like him, do you think?!! There are at least 10-20 cr chaiwallahs in India, and the ones you know are barely 5000 among them!
True. But according to your own statement this doesn't put in much dent to the above video research. At the end as you said, there are "LAKHS" of people like this, which I also understand is correct. As there are many people who earn a significant amount from small businesses, still act lower middle class and don't pay any taxes. The problem lies in aforementioned "lakhs". For easier calculation let's say it's a crore of the shrewd small business people who have small businesses but large income scales. Even with a crore people like this... they won't constitute to 1% of our countries population. And for every paan/momo/chaat wla that earns well in a city or an area, there are hundred counterparts to them who struggle even to make there's ends meet, whose population makes the majority chunk of our country.
Bro do you think the people whose job is to figure these things out and are reputed around the world to figure these things out well don't know what you just wrote in this comment? It is taken into account 🥹
@@chethanshajan9047 Considering the PPP in India is not enough. Cause the PPP in metropolitans like Bangalore is lesser than that in small towns like Ranchi, Bhilai etc. and much lesser than that in villages.
Please start giving more importance to assets and household income. Also, more reports can be made based on expenses rather than income. India might not have many high-earning individuals in white-collar sectors it has a lot of small business owners who earn a lot. The real estate market and land ownership should also be explored.
To enjoy a coffee in star bucks, you wont sell your assets right? so that's why asset or wealth don't qualify to judge income classes. Because liquidity drives everything. Many people has got property in heritage but if they are failed to earn good income. Eventually they lives a very poor lifestyle!! We can see many such example in our society!!
exactly if salaries are operated on cost to company basis then employers should also be expense basis which should include opportunity costs such as forgone income due to pursuit of some education etc
@@riteshsingh118 But own home and rental properties do increase a person's lifestyle, not having liabilities enables you to have more disposable income. Also if you have land values which have seen sharp appreciation you probably won't take loans for any major life decision but sell some of the land. Many income is not directly visible but does help a lot in making your life more comfortable.
@@soubhikdutta6184 True, I agreed with you. Income is important, the source is irrelevant if it is active or passive. But people having good rental income shouldn't be considered a lower income group.
Very good. Most of the people who think they're middle class are actually lower-middle class. Most of the population in our country is Lower-Middle Class. I think people who have a car, or can purchase a car and can maintain it without much difficulty should only be called Middle Class
@@sudarshanmhatre5429 Petrol bhi aata hai usme, and maine without much difficulty bola - So that means ki agar vo bnda chahe to daily office commute kr skta hai, 200-300 ka Petrol Dalwake.
@@karthikeyanm.v8381 Bro I used the word "Without Much Difficulty". You certainly haven't seen rich people - Go someday and visit areas like Greater Kailash, New Friends' Colony etc if you're in Delhi. Otherwise you can see luxury hotels and marriage halls - These are for rich people.
There are no facts........27 lakh per year is too much, you can atleast buy a apartment home of 2bhk...........you would atleast have several crores of rupees in 10 years and life is settled........this lifestyle comes under lower rich people or people who can afford more than basic necessities............. middle class are those who can afford basic necessities but not a luxury life than the person who earn 27 lakhs per year....... middle class are considered between 2 lakh per annum to 10 lakh per annum............most Indians falls under lower middle class which means more than half of the country earn less than a lakh per annum........our country average GDP per capita not even more than 3 thousand dollars (2.4 lakhs) per annum.........most of these people save money sometimes sacrificing basic necessities for a day to Live and feed their family members everyday........... if people consider 27 lakh per annum salary person is also a middle class then they are fooling people or they are foolish themselves........i don't know what their agenda or goal is but this video has lot of misinformation.....
These studies don’t work in India as almost 90% of micro to small businesses file itr so low that they don’t fall in the tax bracket. Even if their income is far above the tax bracket they just don’t want to pay taxes. Also most tier-2 and 3 cities have cash driven businesses so it becomes easier.
Good for them! I pay hefty GST and ITR every year. govt gets a lot out of it and after moving crores from one pocket to another all I get for myself is less than 10LPA. It was easier and better when I had a job. And what does govt. give back in return? Daily humiliation by cops? Subhuman treatment by govt. officials? Almost 90% of small businesses file low ITR because they don't make that much money. High revenue != high income.
I'm from poor class, my family can't even afford daily necessary food and it's so sad. Being the oldest brother stuck between dream and necessity, life is hell. Still Never give up no matter what
@@kislaysingh3446 bhai bhot mushkil se kharida h bhot arrangements krke. Bhai apko ye pta h mere pass mobile h lekin ye nhi pta ye aaya kaise h and kitne saalo baad
There are no facts........27 lakh per year is too much, you can atleast buy a apartment home of 2bhk...........you would atleast have several crores of rupees in 10 years and life is settled........this lifestyle comes under lower rich people or people who can afford more than basic necessities............. middle class are those who can afford basic necessities but not a luxury life than the person who earn 27 lakhs per year....... middle class are considered between 2 lakh per annum to 10 lakh per annum............most Indians falls under lower middle class which means more than half of the country earn less than a lakh per annum........our country average GDP per capita not even more than 3 thousand dollars (2.4 lakhs) per annum.........most of these people save money sometimes sacrificing basic necessities for a day to Live and feed their family members everyday........... if people consider 27 lakh per annum salary person is also a middle class then they are fooling people or they are foolish themselves........i don't know what their agenda or goal is but this video has lot of misinformation.....
I believe the studies in Indian context is usually out of place. Unless we don't have a formal and set metrics to study's large informal sector of India, we will tend to ignore a major chunk of Indian population. I am from Patna. It's a tier 2 city. I went to my hometown after 3 years. I saw changes. News malls coming up. Food joints are jam packed. There's a area called yogipur in Patna. It has slums. But it's just on paper. It houses the "sabziwalas" who ser up their shops in Hanuman nagar of Patna. Most of thr sabziwala have land or a house in Patna. And having a land or house is no joke in Patna. Another indicator is growing crowd in aviation sector. The Patna airport is more congested than ever before.
Patna airport is becoming more crowded just like Patna Railway stations.... It shows both educated and labour class of Bihar is going out of Bihar in search job
Dude our tenant stays cramped up here, but he has hectares of tobacco farms in Rajasthan & few havelis. His family is expanding at rahte of 4 children per couple and each is taking over local shopkeepers. And guess what? They employ kids from village, 17 year olds. Give them minimum wages and here eating up all local baniya business. Ab election ladhana hi baki hai
Problem is them bringing regressive culture to progressive states, the garbage after Chhat Puja or child marriage being promoted in Rajasthani families is too much
You said what I had in mind for so many years. I applied at U of Maryland at College Park for my MBA, got Graduate Assistantship. I could not apply at Harvard or Wharton because they don't provide 100% funding. I didn't have money to buy plane ticket. Even that was paid for by Kachua Agarbatti owner's donation. I find it annoying when Indra Nooyi and Sundar Pichai call themselves poor. Poor people can't even think of applying at Wharton and Yale. This is because even if you get GA, you still have to fork out thousands of dollars.
The sabjiwala near my home would be considered a poor or low income person but his daily profit is 1-1.5k MINIMUM. No reaserch can tell you how much money a lot of indians have in reality.
Is it? If so, please give a lecture to a person who earns only 4000 rupees a month. If he complains about his low income, then you should shut him up. People like you are a disgrace to the country.
Western definition of poverty doesn’t apply to India and many Asian and African countries. In India someone earning $2 a day can get three good meals but not in the west - nor even a cheapest sandwich for $2.
Pretty sure that's taken into account here, because to enter the middle class in US u need to earn the dollar equivalent of ~37.5 Lakh inr per year, and even in Mumbai (highest cost of living in India (or close, if somehow it isn't the highest)) that would be considered a very good salary
Govt revenue is increasing at a subtantial rate which means that indian middle class is also increasing at a substantial rate, there are many of my friends who don't even pay income tax but still has livelihood similar to mine
The chart at 1:53 is really confusing. And the 2011 data, in the chart at 4:10, adds upto 101.5%. Besides that this video is informative and imperative. Thank you.
There are no facts........27 lakh per year is too much, you can atleast buy a apartment home of 2bhk...........you would atleast have several crores of rupees in 10 years and life is settled........this lifestyle comes under lower rich people or people who can afford more than basic necessities............. middle class are those who can afford basic necessities but not a luxury life than the person who earn 27 lakhs per year....... middle class are considered between 2 lakh per annum to 10 lakh per annum............most Indians falls under lower middle class which means more than half of the country earn less than a lakh per annum........our country average GDP per capita not even more than 3 thousand dollars (2.4 lakhs) per annum.........most of these people save money sometimes sacrificing basic necessities for a day to Live and feed their family members everyday........... if people consider 27 lakh per annum salary person is also a middle class then they are fooling people or they are foolish themselves........i don't know what their agenda or goal is but this video has lot of misinformation.....
@@manojramesh4598 dude u have no idea, nothing happens with 27 lpa..after tax salary would be around 18-19 lpa, and 7-8 lac is easily the annual expenditure, what u have in the end is 8-9 lacs.... then if think of house car, all you got comes to 0.
Nope they will not. 2 people income should be atleast 90K to be classified as middle income. They would be lower middle income and with 2 children poor.
as per my observation, many people around me earn more than 1500rs per day. People need to understand the Indian economy can not be studied based on the data, actual reality is very different then the data.
@@mr.osx3423 Sample size should be big, and broader and should be a survey based just like a census survey. We can't trust anything just because it has been said by an American agency which has an evangelical origin
I beleive the survey dint take into account all the black money and unorganised sector and unofficial earnings which most people don't declare in official channels and this type of income is significant in india. That's the shortcoming with these kind of surveys
These surveys do not consider a lot of official income also. Like your ancestral wealth, land prices. People in small cities living in joint families and with own house can live like middle-class even with low income.
Not just income, one needs to see how many dependents one has. Might be earning 20LPA but with 2-3 dependents, average goes down to middle income category from high income
The survey doesn't really represent the realities, you've to consider the household income, nowadays more people in a family are working, also the surveys won't cover small businesses and real estate I believe. either ways the Middle class is more words than show in India, it's not surprising most Indians struggle to increase their income in white-collar jobs unless they're from IT, may even get a rung below as we neither are skill based nor technology/research-based society.
This whole video was based on the Pew report. But, what was the basis that pew took to decide that those were the specific income figures to decide the class? Also, if it was decided on the world scenario then how right is it to put a blanket income figure on the whole world? The average household products in India are 70% cheaper compared to the US. That in itself answers why we cannot put a blanket rule.
Income and class was not decided in a world scenario, it was decided in Indian scenario WITH RELATION TO world scenario. Dollar currency value was taken as a standard because it dominates global economic trade, and is one of the richest. India is a part of the global economy so value Determinations have to be international in nature. Doing This is good for Indians as we are not North Korea or formally closed economy, and also because it helps ALL Indians maintain a healthy objective view of their world and national standing, hence avoid financial foolishness and financial complacency
@@regaliaretailfashionmerch4314 But the Pew survey is not survey-based. It's model-based. It's a generalisation and also, the US dollar is losing its grip from the international market
This data is completely biased...half true...bcoz that 2% thing is only in paper who ever filling tax...but in my around people are there who hv lot more wealth than those 2% private public govt job holders...and maintaining a lavish life with 2 story building new model cars [14/18 lacs].and they don't fall into salaried class and don't pay regular tax.Those people % are more than salaried class which govt don't keep track and no data on website
People don't get it and always tells see how people in my around has so much money..... It's becoz we mix with people who are just like us our realtives family the area where we live even our friends are from our monetary status since childhood....And we just envy upper income people who is rich..... But we don't even think about thousands of lower income people daily around us
@@shreyanghosh758 Exactly... People who claim "Tea seller earns 5 lakhs per. month" don't understand the simple point.. PEW research or any govt research bodies are NOT fools... simply claiming "They don't understand INDIA" is downright stupid... These guys don't even understand only IT filing can be hidden... any land registration, vehicle registration has to go through the system and it can be used to deduce facts... Also for every TEA SELLER there are thousands of peasants who can afford only TEA for breakfast...
Tell the actual number not story, India's per capita income is only 172000 including all billionaires and millionaires. India ranks 112 among all the countries.
For people who consider themselves as middle class, if you earn 1 lakh in a 4 member family where you are the only active earner, then your effective income is only 25k and you are poor, not middle class. And again 1 lakh should be your monthly take home, not including taxes
Two people living in the same house don't spend twice as much money as one person would. If you lived alone in a house, you may need a smaller house. But you'd still need to buy a whole fridge, washing machine, gas stove, fans, lights, etc. You won't buy two of those things if one more person came to live with you. You also would not pay twice as much electricity bill if you and your spouse spend most of the time in the same room, as you'd still use the same lights, fans, AC, etc. So 4 people living in one house is MUCH cheaper than 4 people living individually in separate homes. Your effective income would be much higher than 25k.
25k per month per person is not poor. It's 50% higher than India's per capita average. You also need to include any passive income sources from your savings or capital gains to get your actual per capita income.
@@girishkm7618 Thanks. I was going purely by the statistics mentioned in the video where they were considering per capita income of a person instead of total household income. Agreed on including passive income sources also but the average person in India unless they have generational wealth are more caught up in debt instruments like home loan, car loans and credit card loans. The outgo is more than the inflow in most cases.
I think now more people are shifting from low income and meddle income . Shift which came earlier from poor to low income will now come in Lower income to middle income.
Middle class has several layers - lower lower, lower middle, middle, middle upper, upper middle If you want the number based on annual earning - 5LPa, 9lpa, 14 lpa, 20 lpa, 30 lpa
Actually Nirmata Sitaraman has BPL card and lives in Mumbai slums , who cant afford to buy a car or home , and doesn't eat onions because she can't afford them !!
These figures in my opinion can be explained by India having jobless growth where major companies and educated indians have seen income growth but not the poorest or low income people... Service jobs for english speaking upper class people are not enough for spreading out growth for the vast majority of indians... We need more manufacturing jobs like what China did to benefit the lower income class to actually see wide spread growth and better quality of life for everyone... The reality is that manufacturing sector contracted 1.1% last quarter so this is showing the trajectory where the country is headed which is just more income inequality. Bangladesh has much higher quality of life indicators (HDI) and a higher GDP per capita now too because they focused on female employment and textile manufacturing.
India has overtaken Bangladesh in terms of gdp per capita for 2022-23 by $300. It went ahead only because of 7% fall in Indian gdp in the year 2021-22, while their fall was around 1-2% only.
India needs gun rights and all of a sudden corruption and government abuse will vanish. Until that happens, India will have similar wealth distribution 200 years form now.
Do you know how GDP calculated and GDP per capita? India's GDP per capita income is 172000 including all billionaires and millionaires. India ranks 112 among all the countries in the world.
Middle class are getting poorer during Modi tenure. Before that India was known for the consumption power of middle class. The Modi government has tremendously hurt middle class economy, there by the demand in the market gradually reducing which is affecting the GDP growth. If the finance ministry is run by CAs and babus, then God save this country.
9 crore of 140cr is 12% so 89% are poor technically while ther other 10% claim tax benefit becuase of their resons and hardly few % of people who are earning 7L+ must be paying taxes.
Not an economist here but those daily dollar figure converted directly to INR doesn't make much sense unless PPP is factored in. 10 USD in USA will get you a burger meal whereas the equivalent INR will go quite a bit further than that.
It is factored in . Kindly read the note @3:30 . All numbers are expressed in purchasing power parity dollars. So when he said $10-$20 OR 700-1500 rupees , he does NOT mean actual daily income in India but the PPP ( Purchasing power parity ) equivalent . Actual income earned for middle-income category would be 30% of 700-1500 rupees or 210-450 rupees. - This is actually misleading , if you read many of the comments. They think the middle-income category actually earns between 700-1500 rupees. That is not correct .
Bhai sirf middle class nahi. There is lower middle class, average middle class and upper middle class. Being poor in India means that you are having difficulty in feeding your family, is almost homeless or extremely impoveroshed. The domestic helpers, security guards would belong to lowest of middle class because they are well fed and children also go to school and they can uplift themselves by giving there children good education etc and some of them can afford a two wheeler, flat screen tvs etc. Aise is average middle class would be those where all can afford two wheelers and quite a lot can afford cars, many of them have own home in an urban area, children going to English medium descent schools etc. Then come upper middle class where all cam afford atleast one car, all have there own house and quite a lot have one plus car etc etc, but still can't afford say a full time driver or a full time house help. People above them would be upper class and above them rich class.
Agree with your classification here. Upper middle class though may even afford driver, the distinguishing feature for Upper and Truly rich is whether they work for someone or employ others.
we should consider income per head. 3 member family earning 50K pm is not equal to family if 6 earning same. Again, we need to consider ancestral property,gold & other investments.
6.6 crore is a large number buddy Because you should multiply it by number of family members depended on the one person 4 or 7 so it would be something around 26 - 47 cr
It all depends on how much a country is dependable and not dependable on other countries. For example, if a country is sustainable in growing crops, storing them, transporting them then the prices will be less based on the demand. Hence even if you earn less you will get the food to eat. It is same for all.
Middle Class shrunk to lower middle class or poor, Land Holdings and assets if not located in or near metro cities don't earn enough to support life in cities, Agriculture is a unpredictable income source in India. Renting properties do not produce enough wealth after taxes and maintenance(cost of land in cities prohibit investment in real estate due to mismatch in income vs investment) On one hand government is busy sucking peoples money and on the other inflation is sucking people dry, If someone in India is earning below 5lakhs per annum they should be classified as poor anything up to 10lakhs as middle class and anything above 25lakhs as rich. Nirmala sitaraman thinks taxing people mindlessly is the best solution to increase Indias gnp and gdp.
The labour cost in Patna is around 500 per day and the Raj Mistri which is the one taking important decisions during construction earns around 1000 per day. That's the rate. In villages you won't get mistri at 300. They won't even talk below 400-450.
Uncleji, agency credibility, and its understanding about India? Regarding the sample used for this study, and looks study was conducted in dollar terms.
Middle class is a mindset I think in Indian context it means I can live comfortably but I can waste money on CCD Or starbucks…. Il rather live humble lifestyle save and invest on gold / real estate …. Can’t be determined by income alone it depends on your household expense due to various responsibilities one may have parents/ grandparents/ kids / someone with special needs/ some one with any long term ailments/ travel and transport … cost of living is very high in some urban areas that makes basic expenses very high too so a salary of 27lakhs with 30% tax slab is around 18lakhs with all deductions. Considering shes in her 50’s this salary her salry will be higher and cannot be compared with youth who would earn lesser on an average…. For people who are entrepreneurs or doing business they barely pay taxes so they net income would potentially be same or even more… most people will have some grandparent or parent with a good pension that sometimes takes care of the whole household expenses too…. So there are too many variables and a comparison is difficult to draw
All Indians are happy with current economic and political environment. 1. More military power 2. More religious movement 3. LPG at 1100₹ People no longer complain about taxes, low salary, high cost of living and are completely happy with the current BJP government. If the majority is happy then why worry?? Educated people are migrating to Canada and Australia in millions giving up citizenship too!
Yes the majority is happy 😂 you have any problem . You have money then you can happily move to UK USA Canada Australia Uae please my friend migrate from our country you will get a very high quality of life in foreign countries. We are happy in india 😂
Have you ever seen any Govt. building industrial corridors, 40kms of Expressways and various roads per day, Make in India and what not. You are right still many people are leaving but India is also trying tk creat more opportunities. Real nation building is going on at a massive scale and record pace. Pls appreciate a bit as we become the 4th largest economy overtaking Germany in 2024-2025
The people who are migrating to Australia and Canada are the ones who have a lot of money and land property and they failed to get a job in India due to their incompetence. The real educated people are staying in India and earning more than those people in Canada and Australia. Recently many educated people from USA are also shifting back to India. So you need to get out of your dreams and see the reality.
@@TON-vz3pethat's not government fault chutiya. Property prices increase according to demand. Don't know why illiterate people like you exist in this country
The day you had to pay more than 40 Lakh rupees for a stupid Apartment, then we understand the dire situation the country is in and how corrupt things have become.
Very succinctly put together video with clear data points. My only query/ question: you have quoted multiple sources for the data - oxfam, pew, world bank etc. Is there no Indian govt led data sources ? There must be multiple surveys done by different ministries and govt bodies.
The pyramid chart provided at 3:38 in the video is more than a decade old (2011), the dollar was hovering around 46Rs at that time, as per that, earning around 1500rs/day in 2011 translates to the to 2700Rs/day in the year 2023. That's around 10lacs INR per annum
NO. Many people are making the same mistake . Video is misleading . Kindly *read* the note @3:30 : All numbers are expressed in purchasing power parity dollars. So when he said $10-$20 , he does NOT mean actual daily income in India but the PPP ( *Purchasing power parity* ) $ equivalent . Actual income earned for middle-income category would be 30% of 700-1500 rupees or 210-450 rupees. For India's PPP conversion factor please go to World Bank website . By 2011 he means the purchasing power parity of 2011 . This is mentioned in Pew Research website & it's research report . The PPP conversion factor is higher now than it was in 2011 , meaning purchasing power of Rupee in comparison to $ has decreased since 2011 .
@@sideonsid2885 I got the below data on Purchasing power parity : "The PPP exchange rate between INR and USD in 2011 was 17.73 INR per USD, while in 2021 it was 23.39 INR per USD". As per this if I want to translate " 1500Rs/day in the year 2011 to today's money (worth of items I can buy in India), that comes to Rs1978/per day in 2023 which is around 7.3lacs INR per annum??
@@adityaagarwal6248 No brother . There is NO 1500Rs/day . It is incorrectly derived . The video is extremely misleading. Listen to @3:27 - He is saying Middle income lives on *$10-$20* per day ( This $ figure is the PPP equivalent from the Pew report which he is referencing , then he incorrectly converts it into ₹700-₹1500 on his own ! This is completely incorrect ). $10-$20 per day would mean Middle income category actually lives on ₹233.9 - ₹467.8 per day (as per the 2021 PPP exchange rate you have mentioned ) or ₹85K - ₹1.7 Lakhs per year .
In the Indian context identifying oneself as middle class is based on the mindset, and not based on income. Some indicators: Travel AC 2nd class or reserved seating in chair car; Eat out once a month in a decent hotel, but not consider more than fine dining outlets in a year. Perhaps just graduated from a two wheeler to a low end four wheeler. In current situation one may prefer a OLA over owning a four wheeler.
This report will make the people of Bangladesh and Pakistan very happy who always think that all indians are very poor and they were rich only because of political corruption they are now facing this and that....
It should be classified based on household income and what is percentage of expenses… you might earn 2 lakh per month and spend 90% of it then you are poor class..
What about debt, family headcount, self employment, other liabilities? 2 people may earn 1 lac but one has 4 members to support with a home loan and the other one 2 members with parental inheritance
If Nirmala Sitaraman is middle class then I must be Brad Pitt.
First rule of fight club is ______________________
And I'm Angelina jolie
GG
Bhagwan aisa middle class sabko banaye
@@yogeshselwad 😂😂
In India, the term middle class is used as a shield to pose innocently in front of commoners!
exactly
yes everyone want to claim themselves as middle class.. even people who earn 2 lakh per month
गजब का दिमाग है भाई!
Even in the states and the uk. The point is however, unless you're earning more than 60 lakhs a year luxuries like a luxury car and expressive European clothing are also out of your reach
@@jeniljebajosin5967 that's still upper middle. You can't do much besides feed yourself pay rent and occasionally order pizza
I will say living with 700 rupees per day in a village is definitely above middle class.
You've obviously never seen a village. Prices of everything except home rent are the same as any city.
@@mananpandya1397 No buddy only different is MRP grocery.. food and fruits are very cheap in villages and towns and 2nd thing you don't need to travel long so it's reduces petrol expenses
@@mananpandya1397 Do you know the house rent in city ?
ya in village petrol diesel gas is produced from their farm ya
700 for how many family members
Hm, 700 to 1500 rupees per day. Meaning 21k to 45k monthly income. For a family of 4, it would mean that a monthly income of 84k to 180k would classify as middle class. No wonder the % is so low... Most families will stay in low-income until their children begin earning. And if their children get good jobs, then they could skip the middle inccome and directly enter upper-middle income.
I guess, in Indian context, low-middle, middle and upper-middle income categories are all considered as middle class.
Most are lower middle class which means even a small problem in financial and economic stability can ruin them to poor ......u did see what happened after covid ri8?
@@manojramesh4598 not really. No one in my neighbourhood suffered with anything other than the obvious inconveniences of the Lockdown and a deadly virus and majority of them are in the Low-income group.
In fact many got richer as they invested in the stock market at the right moment.
@@devilhex2802 u r talking about neighborhood may be u r in rich areas ........u didn't see the people who are working in factories, slums, city borders and Street and how they suffered during lockdown.......... people become rich not because they invested in right time but the pandemic had lot deman on digital content.......so rich got richer......poor got poorer........ nobody invests in poor .......
@@manojramesh4598 dude, I said most in my neighbourhood are low-income (according to this video). Though they should be close to the middle income mark.
And yeah, I can guess that construction workers and people in similar jobs would have suffered as all those works were put on a halt. But I didn't see any of them (which was your question).
As for investment, I could pass a mean comment, but instead I'd recommend you to do a proper study on how to invest properly. It'll benefit you a lot. Once you learn it, you will understand why people who got into the stock market during the crisis made a lot of money (irrespective of their income class). Of course, the money they made is directly proportional to the amount of money they could and were willing to risk to put in. So they didn't earn in crore, but earning a few lakh rupees in the stock market in an year is still very helpful for people like us. (PS : Since its the stock market, of course many also lost money. These were people who invested before the pandemic and quit during it).
@@devilhex2802 that is what I'm saying......the middle class video is not only about ur neighbour .......its about whole country........ Stop comparing all the people in the country with neighbourhood.........as u r saying "no one in my neighborhood really suffered....." as i was replying the problem of the lockdown for the whole country middle and lower middle class
Well almost all these studies are false to a large extent especially when about India. A large part of the economy is still informal and so the actual money earned by a LOT of people are misrepresented. I knew a chai walla in Pune who lived his life like a low income individual ( small house where he and his 3 employees slept) but he was earning around 3 to 4 lakhs per month. He has 3 daughters two of whom became doctors and he managed to send all of them abroad for studies. He still lives very modestly but earns a ton of money. There are lakhs of such people in India.
Many incomes aren't in books/ registered
That's a statistical outlier. Many have this 'I know one xyz'-syndrome. How many chaiwallahs are like him, do you think?!! There are at least 10-20 cr chaiwallahs in India, and the ones you know are barely 5000 among them!
True. But according to your own statement this doesn't put in much dent to the above video research. At the end as you said, there are "LAKHS" of people like this, which I also understand is correct. As there are many people who earn a significant amount from small businesses, still act lower middle class and don't pay any taxes.
The problem lies in aforementioned "lakhs". For easier calculation let's say it's a crore of the shrewd small business people who have small businesses but large income scales. Even with a crore people like this... they won't constitute to 1% of our countries population. And for every paan/momo/chaat wla that earns well in a city or an area, there are hundred counterparts to them who struggle even to make there's ends meet, whose population makes the majority chunk of our country.
So you're telling me a chaiwala earns 10 grands every day, ain't no way ain't no fucking way
Bro do you think the people whose job is to figure these things out and are reputed around the world to figure these things out well don't know what you just wrote in this comment?
It is taken into account 🥹
$2 in US is very different from $2 in India.
Yes $2 in India is like $20 in USA
That has already been taken account of.. It's calculated for PPP in India... Plus in America if u hv to be middle class then the line is 37$/ day
Everyone knows that, that is why middle income is so low. 80 crores of the Indians cannot even afford food and are dependent on Government.
@@chethanshajan9047 Considering the PPP in India is not enough. Cause the PPP in metropolitans like Bangalore is lesser than that in small towns like Ranchi, Bhilai etc. and much lesser than that in villages.
Please start giving more importance to assets and household income. Also, more reports can be made based on expenses rather than income. India might not have many high-earning individuals in white-collar sectors it has a lot of small business owners who earn a lot. The real estate market and land ownership should also be explored.
Yes but they suck more out of the economy rather than giving. So might as well ignore them.
To enjoy a coffee in star bucks, you wont sell your assets right? so that's why asset or wealth don't qualify to judge income classes. Because liquidity drives everything. Many people has got property in heritage but if they are failed to earn good income. Eventually they lives a very poor lifestyle!! We can see many such example in our society!!
exactly if salaries are operated on cost to company basis then employers should also be expense basis which should include opportunity costs such as forgone income due to pursuit of some education etc
@@riteshsingh118 But own home and rental properties do increase a person's lifestyle, not having liabilities enables you to have more disposable income. Also if you have land values which have seen sharp appreciation you probably won't take loans for any major life decision but sell some of the land. Many income is not directly visible but does help a lot in making your life more comfortable.
@@soubhikdutta6184 True, I agreed with you. Income is important, the source is irrelevant if it is active or passive. But people having good rental income shouldn't be considered a lower income group.
Very good. Most of the people who think they're middle class are actually lower-middle class. Most of the population in our country is Lower-Middle Class.
I think people who have a car, or can purchase a car and can maintain it without much difficulty should only be called Middle Class
Sorry bro car aur uska maintenance ₹ 700 - ₹ 900 kamane wale bhi kar sakte.
Bro if you have a car then you are rich in India .
@@sudarshanmhatre5429
Petrol bhi aata hai usme, and maine without much difficulty bola -
So that means ki agar vo bnda chahe to daily office commute kr skta hai, 200-300 ka Petrol Dalwake.
@@karthikeyanm.v8381
Bro I used the word "Without Much Difficulty".
You certainly haven't seen rich people - Go someday and visit areas like Greater Kailash, New Friends' Colony etc if you're in Delhi. Otherwise you can see luxury hotels and marriage halls - These are for rich people.
First, we need roads to have cars.
Instead of considering adult income, they should use family income to determine size of middle class.
There are no facts........27 lakh per year is too much, you can atleast buy a apartment home of 2bhk...........you would atleast have several crores of rupees in 10 years and life is settled........this lifestyle comes under lower rich people or people who can afford more than basic necessities............. middle class are those who can afford basic necessities but not a luxury life than the person who earn 27 lakhs per year....... middle class are considered between 2 lakh per annum to 10 lakh per annum............most Indians falls under lower middle class which means more than half of the country earn less than a lakh per annum........our country average GDP per capita not even more than 3 thousand dollars (2.4 lakhs) per annum.........most of these people save money sometimes sacrificing basic necessities for a day to Live and feed their family members everyday........... if people consider 27 lakh per annum salary person is also a middle class then they are fooling people or they are foolish themselves........i don't know what their agenda or goal is but this video has lot of misinformation.....
@@manojramesh4598 true
They said per capita
@@manojramesh4598 they didn't say that FM is actually middle income or middle class, they showed what she said
@@manojramesh4598 You didn't understand the video even a little bit. They didn't say FM is middle class. Only FM claimed that.
These studies don’t work in India as almost 90% of micro to small businesses file itr so low that they don’t fall in the tax bracket. Even if their income is far above the tax bracket they just don’t want to pay taxes. Also most tier-2 and 3 cities have cash driven businesses so it becomes easier.
Yep they don't even take UPI payment in order to hide their income from government.
Good for them! I pay hefty GST and ITR every year. govt gets a lot out of it and after moving crores from one pocket to another all I get for myself is less than 10LPA. It was easier and better when I had a job. And what does govt. give back in return? Daily humiliation by cops? Subhuman treatment by govt. officials?
Almost 90% of small businesses file low ITR because they don't make that much money. High revenue != high income.
I'm from poor class, my family can't even afford daily necessary food and it's so sad. Being the oldest brother stuck between dream and necessity, life is hell. Still Never give up no matter what
God bless you bro may your suffering end .Don't give up .God bless you
but mobile jarur hai
@Bharani Bharani but bro hum kya kr skte h, vo to parents ki galti h
@@kislaysingh3446 bhai bhot mushkil se kharida h bhot arrangements krke. Bhai apko ye pta h mere pass mobile h lekin ye nhi pta ye aaya kaise h and kitne saalo baad
@@LEGEND-ep7ip mai bhi kabhi esse jayada garib hua karta tha ,,,,,,, padhle le bhai ,, ye sab video baad mai dekh lena nhi to pachtana padega
Most of Indian wealth is hidden in real estate and gold...how many bungalows you see even in small towns .
There are no facts........27 lakh per year is too much, you can atleast buy a apartment home of 2bhk...........you would atleast have several crores of rupees in 10 years and life is settled........this lifestyle comes under lower rich people or people who can afford more than basic necessities............. middle class are those who can afford basic necessities but not a luxury life than the person who earn 27 lakhs per year....... middle class are considered between 2 lakh per annum to 10 lakh per annum............most Indians falls under lower middle class which means more than half of the country earn less than a lakh per annum........our country average GDP per capita not even more than 3 thousand dollars (2.4 lakhs) per annum.........most of these people save money sometimes sacrificing basic necessities for a day to Live and feed their family members everyday........... if people consider 27 lakh per annum salary person is also a middle class then they are fooling people or they are foolish themselves........i don't know what their agenda or goal is but this video has lot of misinformation.....
Do you have any data t back it
@@parthshukla545 gaand main daal le data . Bsdk jab khud hamne dekha hain India main ki log kitni wealth chupate hain toh data kya cahiye
the blanket statements works good in india, this is why politicians are the only future for india
It is just propaganda to help the congress party, bought to you by the Christians who run Moneycontrol and rediff @@manojramesh4598
I believe the studies in Indian context is usually out of place. Unless we don't have a formal and set metrics to study's large informal sector of India, we will tend to ignore a major chunk of Indian population.
I am from Patna. It's a tier 2 city. I went to my hometown after 3 years. I saw changes. News malls coming up. Food joints are jam packed.
There's a area called yogipur in Patna. It has slums.
But it's just on paper.
It houses the "sabziwalas" who ser up their shops in Hanuman nagar of Patna.
Most of thr sabziwala have land or a house in Patna. And having a land or house is no joke in Patna.
Another indicator is growing crowd in aviation sector.
The Patna airport is more congested than ever before.
Patna airport is becoming more crowded just like Patna Railway stations.... It shows both educated and labour class of Bihar is going out of Bihar in search job
@@shreyanghosh758 Kuch bhi... 😂😂 As if there was no dearth of jobs previously.
GOI had to expand patna airport because of increasing footfall.
Bahut khub... Patna mein hi mumkin hai.
Dude our tenant stays cramped up here, but he has hectares of tobacco farms in Rajasthan & few havelis. His family is expanding at rahte of 4 children per couple and each is taking over local shopkeepers. And guess what? They employ kids from village, 17 year olds. Give them minimum wages and here eating up all local baniya business. Ab election ladhana hi baki hai
Problem is them bringing regressive culture to progressive states, the garbage after Chhat Puja or child marriage being promoted in Rajasthani families is too much
You said what I had in mind for so many years. I applied at U of Maryland at College Park for my MBA, got Graduate Assistantship. I could not apply at Harvard or Wharton because they don't provide 100% funding. I didn't have money to buy plane ticket. Even that was paid for by Kachua Agarbatti owner's donation. I find it annoying when Indra Nooyi and Sundar Pichai call themselves poor. Poor people can't even think of applying at Wharton and Yale. This is because even if you get GA, you still have to fork out thousands of dollars.
In Sundar pichais time college education in the US was much cheaper
Higher education for us people themselves is expensive and they rely on student loans
Poor people cant even do mba in iim etc
Kachua aggarbatti owner's donation is the expression of the year 😂
if u were smart enough you would have gotten a free ride in harvard or wharton😅
The sabjiwala near my home would be considered a poor or low income person but his daily profit is 1-1.5k MINIMUM.
No reaserch can tell you how much money a lot of indians have in reality.
poor, if that is his household income also.
No he gets a profit of 40k per month . So that's basically his fixed salary@@vinsin328
Middle class is not about income, it is about mindset and values
Is it? If so, please give a lecture to a person who earns only 4000 rupees a month. If he complains about his low income, then you should shut him up. People like you are a disgrace to the country.
Could not be further for truth, without money mindset and values will not take anyone anywhere
Ye cheej kisi 5 star hotel me jake bol. Dhakke mar ke bahar nikalenge
Yeah sab moh maya hai 😅🤣
lol
Western definition of poverty doesn’t apply to India and many Asian and African countries. In India someone earning $2 a day can get three good meals but not in the west - nor even a cheapest sandwich for $2.
Pretty sure that's taken into account here, because to enter the middle class in US u need to earn the dollar equivalent of ~37.5 Lakh inr per year, and even in Mumbai (highest cost of living in India (or close, if somehow it isn't the highest)) that would be considered a very good salary
If you're interested, check out something called purchase power parity
it's for India only calculated based on PPP
People get to eat in India because others in the family are supporting them.
There's a little thing called PPP which is taken into account when conducting these studies.
Govt revenue is increasing at a subtantial rate which means that indian middle class is also increasing at a substantial rate, there are many of my friends who don't even pay income tax but still has livelihood similar to mine
Your Friends? Among that 2%?
That's because of GST you Nimrod. Middle class are being over taxed.
@@Traderking1990 you are talking as there were no indirect taxes before gst
@@Traderking1990 before Gst, there was Vat tax. Which has much higher tax slab.. Idiot, check data
@@Traderking1990 earlier you were kept in darkness about the indirect tax, now you are being told how much you are paying for the products through GST
The chart at 1:53 is really confusing.
And the 2011 data, in the chart at 4:10, adds upto 101.5%.
Besides that this video is informative and imperative.
Thank you.
There are no facts........27 lakh per year is too much, you can atleast buy a apartment home of 2bhk...........you would atleast have several crores of rupees in 10 years and life is settled........this lifestyle comes under lower rich people or people who can afford more than basic necessities............. middle class are those who can afford basic necessities but not a luxury life than the person who earn 27 lakhs per year....... middle class are considered between 2 lakh per annum to 10 lakh per annum............most Indians falls under lower middle class which means more than half of the country earn less than a lakh per annum........our country average GDP per capita not even more than 3 thousand dollars (2.4 lakhs) per annum.........most of these people save money sometimes sacrificing basic necessities for a day to Live and feed their family members everyday........... if people consider 27 lakh per annum salary person is also a middle class then they are fooling people or they are foolish themselves........i don't know what their agenda or goal is but this video has lot of misinformation.....
@@manojramesh4598 dude u have no idea, nothing happens with 27 lpa..after tax salary would be around 18-19 lpa, and 7-8 lac is easily the annual expenditure, what u have in the end is 8-9 lacs.... then if think of house car, all you got comes to 0.
These are really some good insights man! Thanks for sharing!
I wish the Income Tax portal had an option to Identify myself as middle class and not pay taxes
Annual income over 18.6 lakh is richest 1% of India. Wow
Absolutely incorrect. My maid earns 15K & her husband earns 25K per month totalling 40K per month. Qualifies as middle income?
I think people who have a car, or can purchase a car and can maintain it without much difficulty should only be called Middle Class
Occupation has nothing to do with the income class categorisation...
Middle class depends on where you live. Purchasing power of different states are different.
Nope they will not. 2 people income should be atleast 90K to be classified as middle income. They would be lower middle income and with 2 children poor.
@@asresalim6145 In many developed economies, rich people use public transport.
as per my observation, many people around me earn more than 1500rs per day. People need to understand the Indian economy can not be studied based on the data, actual reality is very different then the data.
Absolutely true !!!
wooooo.......if economy cannot be studied using data, what is economy..?
@@mr.osx3423 Sample size should be big, and broader and should be a survey based just like a census survey. We can't trust anything just because it has been said by an American agency which has an evangelical origin
@@mr.osx3423 it’s black economy which cannot be studied thru data
Yes 90% people don't show their actual income in surveys due to tax avoidance
I beleive the survey dint take into account all the black money and unorganised sector and unofficial earnings which most people don't declare in official channels and this type of income is significant in india. That's the shortcoming with these kind of surveys
These surveys do not consider a lot of official income also. Like your ancestral wealth, land prices. People in small cities living in joint families and with own house can live like middle-class even with low income.
Black money is money printing only.
There is nothing to do with a higher standard of living and industrialization
Not just income, one needs to see how many dependents one has. Might be earning 20LPA but with 2-3 dependents, average goes down to middle income category from high income
Middle Class ❌
Upper Poor Class ✅
Excellent Report … keep it up
This video is so informative, thanks!
The survey doesn't really represent the realities, you've to consider the household income, nowadays more people in a family are working, also the surveys won't cover small businesses and real estate I believe.
either ways the Middle class is more words than show in India, it's not surprising most Indians struggle to increase their income in white-collar jobs unless they're from IT, may even get a rung below as we neither are skill based nor technology/research-based society.
This whole video was based on the Pew report. But, what was the basis that pew took to decide that those were the specific income figures to decide the class? Also, if it was decided on the world scenario then how right is it to put a blanket income figure on the whole world? The average household products in India are 70% cheaper compared to the US. That in itself answers why we cannot put a blanket rule.
Income and class was not decided in a world scenario, it was decided in Indian scenario WITH RELATION TO world scenario. Dollar currency value was taken as a standard because it dominates global economic trade, and is one of the richest. India is a part of the global economy so value Determinations have to be international in nature. Doing This is good for Indians as we are not North Korea or formally closed economy, and also because it helps ALL Indians maintain a healthy objective view of their world and national standing, hence avoid financial foolishness and financial complacency
@@regaliaretailfashionmerch4314 But the Pew survey is not survey-based. It's model-based. It's a generalisation and also, the US dollar is losing its grip from the international market
Middle class is the class which depends on loans😅
This data is completely biased...half true...bcoz that 2% thing is only in paper who ever filling tax...but in my around people are there who hv lot more wealth than those 2% private public govt job holders...and maintaining a lavish life with 2 story building new model cars [14/18 lacs].and they don't fall into salaried class and don't pay regular tax.Those people % are more than salaried class which govt don't keep track and no data on website
Highlight this point!!!
Exactly
People don't get it and always tells see how people in my around has so much money..... It's becoz we mix with people who are just like us our realtives family the area where we live even our friends are from our monetary status since childhood....And we just envy upper income people who is rich..... But we don't even think about thousands of lower income people daily around us
@@shreyanghosh758 Exactly... People who claim "Tea seller earns 5 lakhs per. month" don't understand the simple point.. PEW research or any govt research bodies are NOT fools... simply claiming "They don't understand INDIA" is downright stupid... These guys don't even understand only IT filing can be hidden... any land registration, vehicle registration has to go through the system and it can be used to deduce facts... Also for every TEA SELLER there are thousands of peasants who can afford only TEA for breakfast...
You can't buy 14-18 lacs car without having money in bank, no one will sell you a new car for cash. To have money in bank you need to file ITR.
But i also saw a report which says the Indian consumer's consumption has increased a lot too.
Tell the actual number not story, India's per capita income is only 172000 including all billionaires and millionaires. India ranks 112 among all the countries.
In India middle class is as much a mindset as it's an income level. That's causing confusion
Brilliant presentation.👍
For people who consider themselves as middle class, if you earn 1 lakh in a 4 member family where you are the only active earner, then your effective income is only 25k and you are poor, not middle class. And again 1 lakh should be your monthly take home, not including taxes
Two people living in the same house don't spend twice as much money as one person would. If you lived alone in a house, you may need a smaller house. But you'd still need to buy a whole fridge, washing machine, gas stove, fans, lights, etc. You won't buy two of those things if one more person came to live with you. You also would not pay twice as much electricity bill if you and your spouse spend most of the time in the same room, as you'd still use the same lights, fans, AC, etc. So 4 people living in one house is MUCH cheaper than 4 people living individually in separate homes. Your effective income would be much higher than 25k.
@@zetaforever4953 no .
25k per month per person is not poor. It's 50% higher than India's per capita average. You also need to include any passive income sources from your savings or capital gains to get your actual per capita income.
@@girishkm7618 Thanks. I was going purely by the statistics mentioned in the video where they were considering per capita income of a person instead of total household income. Agreed on including passive income sources also but the average person in India unless they have generational wealth are more caught up in debt instruments like home loan, car loans and credit card loans. The outgo is more than the inflow in most cases.
Pagal h kya bey
I think now more people are shifting from low income and meddle income . Shift which came earlier from poor to low income will now come in Lower income to middle income.
I don't think they are moving anywhere they don't have jobs
Amazing narration
Feeling sorry for these people jinko abb bhi lagta ki 2% of people belongs to middle income family is wrong.
agar vo middle class hai toh india Europe se ameer hota 😂
No india have very big lower class , minimal middle class and few higher class .
I really doubt those numbers. Are those per person or per family ?
per person ...
Middle class has several layers - lower lower, lower middle, middle, middle upper, upper middle
If you want the number based on annual earning - 5LPa, 9lpa, 14 lpa, 20 lpa, 30 lpa
Upper middle is the guy of the upper class - dressed as middle class
Actually Nirmata Sitaraman has BPL card and lives in Mumbai slums , who cant afford to buy a car or home , and doesn't eat onions because she can't afford them !!
These figures in my opinion can be explained by India having jobless growth where major companies and educated indians have seen income growth but not the poorest or low income people... Service jobs for english speaking upper class people are not enough for spreading out growth for the vast majority of indians... We need more manufacturing jobs like what China did to benefit the lower income class to actually see wide spread growth and better quality of life for everyone... The reality is that manufacturing sector contracted 1.1% last quarter so this is showing the trajectory where the country is headed which is just more income inequality. Bangladesh has much higher quality of life indicators (HDI) and a higher GDP per capita now too because they focused on female employment and textile manufacturing.
low skilled manufacturing sectors are what India needed atm
India has overtaken Bangladesh in terms of gdp per capita for 2022-23 by $300. It went ahead only because of 7% fall in Indian gdp in the year 2021-22, while their fall was around 1-2% only.
India needs gun rights and all of a sudden corruption and government abuse will vanish. Until that happens, India will have similar wealth distribution 200 years form now.
@@DevendraKumar9have you ever wondered why it happened that it substantially became lower than Bangladesh
False information.. this data is based on who files retuns..where as shop keepers don’t pay any taxes and buying Assets and cars etc
Do you know how GDP calculated and GDP per capita? India's GDP per capita income is 172000 including all billionaires and millionaires. India ranks 112 among all the countries in the world.
The last part is true to the sense that the middle class is being affected by "lifestyle inflation".
It would be great if you could share/attach reports along with video
Middle class are getting poorer during Modi tenure. Before that India was known for the consumption power of middle class.
The Modi government has tremendously hurt middle class economy, there by the demand in the market gradually reducing which is affecting the GDP growth.
If the finance ministry is run by CAs and babus, then God save this country.
Feku and his cronies sucking the blood of people by increasing taxes every day.
Atleast 9 crore people in India pay direct taxes, that is their income is above 5 lakh per annum.
Then how come 95 % are low income or poor?
9 crore of 140cr is 12% so 89% are poor technically while ther other 10% claim tax benefit becuase of their resons and hardly few % of people who are earning 7L+ must be paying taxes.
Nice eye opener info
What in China called poor class, In India it is middle class !!! It is not Quantity, it is quality matters .
Not an economist here but those daily dollar figure converted directly to INR doesn't make much sense unless PPP is factored in. 10 USD in USA will get you a burger meal whereas the equivalent INR will go quite a bit further than that.
It is factored in . Kindly read the note @3:30 . All numbers are expressed in purchasing power parity dollars. So when he said $10-$20 OR 700-1500 rupees , he does NOT mean actual daily income in India but the PPP ( Purchasing power parity ) equivalent . Actual income earned for middle-income category would be 30% of 700-1500 rupees or 210-450 rupees.
- This is actually misleading , if you read many of the comments. They think the middle-income category actually earns between 700-1500 rupees. That is not correct .
kid $10 is per hour pay in usa where as in india it's whole day pay 🤣🤣🤣🤣, how is usa hiring dumb people
Bhai sirf middle class nahi.
There is lower middle class, average middle class and upper middle class.
Being poor in India means that you are having difficulty in feeding your family, is almost homeless or extremely impoveroshed.
The domestic helpers, security guards would belong to lowest of middle class because they are well fed and children also go to school and they can uplift themselves by giving there children good education etc and some of them can afford a two wheeler, flat screen tvs etc.
Aise is average middle class would be those where all can afford two wheelers and quite a lot can afford cars, many of them have own home in an urban area, children going to English medium descent schools etc.
Then come upper middle class where all cam afford atleast one car, all have there own house and quite a lot have one plus car etc etc, but still can't afford say a full time driver or a full time house help.
People above them would be upper class and above them rich class.
Agree with your classification here.
Upper middle class though may even afford driver, the distinguishing feature for Upper and Truly rich is whether they work for someone or employ others.
thanks for the informative video
we should consider income per head.
3 member family earning 50K pm is not equal to family if 6 earning same.
Again, we need to consider ancestral property,gold & other investments.
every Indian is middle class because we are Asians
One most important aspect of middleclass is education
Which is always missing in India.
6.6 crore is a large number buddy
Because you should multiply it by number of family members depended on the one person 4 or 7 so it would be something around 26 - 47 cr
It all depends on how much a country is dependable and not dependable on other countries.
For example, if a country is sustainable in growing crops, storing them, transporting them then the prices will be less based on the demand. Hence even if you earn less you will get the food to eat.
It is same for all.
Is food is enough shut up and accept truth
and, we still using PPP of 2011.. 🤣🤣
If she's middle class then we must be beggars 😂
Middle Class shrunk to lower middle class or poor, Land Holdings and assets if not located in or near metro cities don't earn enough to support life in cities, Agriculture is a unpredictable income source in India. Renting properties do not produce enough wealth after taxes and maintenance(cost of land in cities prohibit investment in real estate due to mismatch in income vs investment)
On one hand government is busy sucking peoples money and on the other inflation is sucking people dry, If someone in India is earning below 5lakhs per annum they should be classified as poor anything up to 10lakhs as middle class and anything above 25lakhs as rich.
Nirmala sitaraman thinks taxing people mindlessly is the best solution to increase Indias gnp and gdp.
I earn 30k a month but I identify as Elon musk
What about their pension and business they run on the name of their families wow hypocrisy at its peak 🙂👌🏿
The labour cost in Patna is around 500 per day and the Raj Mistri which is the one taking important decisions during construction earns around 1000 per day. That's the rate.
In villages you won't get mistri at 300. They won't even talk below 400-450.
That is very poor rate.
@@vinsin328 You want them to earn 10k a day?
The engineer of TCS don't earn a 1000 ruppes a day. 😂😂
This video made you realise you not in middle class or you are at bottom of middle class !
If she considers herself middle class, how can we hope she'll understand the conditions of the poor and implement policies to support them?. 🙂
Uncleji, agency credibility, and its understanding about India? Regarding the sample used for this study, and looks study was conducted in dollar terms.
It is taken govt. data, the data given by Sita mata and her finance ministry.
Data is not correct at all...
yes
Middle class is a mindset
I think in Indian context it means I can live comfortably but I can waste money on CCD Or starbucks…. Il rather live humble lifestyle save and invest on gold / real estate
…. Can’t be determined by income alone it depends on your household expense due to various responsibilities one may have parents/ grandparents/ kids / someone with special needs/ some one with any long term ailments/ travel and transport
… cost of living is very high in some urban areas that makes basic expenses very high too so a salary of 27lakhs with 30% tax slab is around 18lakhs with all deductions.
Considering shes in her 50’s this salary her salry will be higher and cannot be compared with youth who would earn lesser on an average…. For people who are entrepreneurs or doing business they barely pay taxes so they net income would potentially be same or even more… most people will have some grandparent or parent with a good pension that sometimes takes care of the whole household expenses too…. So there are too many variables and a comparison is difficult to draw
Middle class is someone who has to give up his/her Aim for money.
in every data...poor people lives on 150/day income...me living in ne india ...labours dont speak without 600/day!
600/4 -> 150 so that is poor.
They don't have earings every day.
I was laughing when I heard MPs make 2.7 lakes per month!!!! I mean they definitely live “beyond their means”!!!
Who created these brackets, why have they not been updated?
even if you are paying 30% income tax, it doesn't mean you are not middle class. 😑
We are moving towards poverty, hunger and dictatorship😢
All Indians are happy with current economic and political environment.
1. More military power
2. More religious movement
3. LPG at 1100₹
People no longer complain about taxes, low salary, high cost of living and are completely happy with the current BJP government. If the majority is happy then why worry?? Educated people are migrating to Canada and Australia in millions giving up citizenship too!
Yes the majority is happy 😂 you have any problem .
You have money then you can happily move to UK USA Canada Australia Uae please my friend migrate from our country you will get a very high quality of life in foreign countries.
We are happy in india 😂
Have you ever seen any Govt. building industrial corridors, 40kms of Expressways and various roads per day, Make in India and what not. You are right still many people are leaving but India is also trying tk creat more opportunities. Real nation building is going on at a massive scale and record pace. Pls appreciate a bit as we become the 4th largest economy overtaking Germany in 2024-2025
Start thinking critically bro.
The people who are migrating to Australia and Canada are the ones who have a lot of money and land property and they failed to get a job in India due to their incompetence. The real educated people are staying in India and earning more than those people in Canada and Australia. Recently many educated people from USA are also shifting back to India.
So you need to get out of your dreams and see the reality.
Aandbhakt supported with 0 IQ
perfect example of how an analysis shouldn't be done.
Perfect analysis and spoke real facts which hurting self entitled day dreaming Indians.
no one in India reveal what they truly earn 😅
GDP and GDP per capita don't calculate in that way.
'India and BJP are doing great job' is as much as true as 'Nirmala belongs to middle class'
If you don't think bjp is doing a great job , then you are just fooling yourself and haven't seen how previous govt literally destroyed indian economy
@@ujjwalkumar1624 Wahh. Because of their great job, I had to pay 50L for a stupid 1100 sq ft apartment in a tier 2 town.
@@ujjwalkumar1624 yeah mainly no vande bharat express also
@@TON-vz3pethat's not government fault chutiya. Property prices increase according to demand. Don't know why illiterate people like you exist in this country
If you can pay 50 lacs for a plot. You better leave the country. I want India's population to decrease. Don't forget to send remittances back home
The day you had to pay more than 40 Lakh rupees for a stupid Apartment, then we understand the dire situation the country is in and how corrupt things have become.
yessss 40 lakh for living in shit
@@Ishant007 yes
I am upper class but i dont go to starbucks. I am not consumption driven
Very succinctly put together video with clear data points. My only query/ question: you have quoted multiple sources for the data - oxfam, pew, world bank etc. Is there no Indian govt led data sources ? There must be multiple surveys done by different ministries and govt bodies.
You believe in PEW Research, Pew pew 😂
The pyramid chart provided at 3:38 in the video is more than a decade old (2011), the dollar was hovering around 46Rs at that time, as per that, earning around 1500rs/day in 2011 translates to the to 2700Rs/day in the year 2023. That's around 10lacs INR per annum
NO. Many people are making the same mistake . Video is misleading . Kindly *read* the note @3:30 : All numbers are expressed in purchasing power parity dollars. So when he said $10-$20 , he does NOT mean actual daily income in India but the PPP ( *Purchasing power parity* ) $ equivalent . Actual income earned for middle-income category would be 30% of 700-1500 rupees or 210-450 rupees. For India's PPP conversion factor please go to World Bank website .
By 2011 he means the purchasing power parity of 2011 . This is mentioned in Pew Research website & it's research report . The PPP conversion factor is higher now than it was in 2011 , meaning purchasing power of Rupee in comparison to $ has decreased since 2011 .
@@sideonsid2885 I got the below data on Purchasing power parity :
"The PPP exchange rate between INR and USD in 2011 was 17.73 INR per USD, while in 2021 it was 23.39 INR per USD".
As per this if I want to translate " 1500Rs/day in the year 2011 to today's money (worth of items I can buy in India), that comes to Rs1978/per day in 2023 which is around 7.3lacs INR per annum??
@@adityaagarwal6248 No brother . There is NO 1500Rs/day . It is incorrectly derived . The video is extremely misleading. Listen to @3:27 - He is saying Middle income lives on *$10-$20* per day ( This $ figure is the PPP equivalent from the Pew report which he is referencing , then he incorrectly converts it into ₹700-₹1500 on his own ! This is completely incorrect ). $10-$20 per day would mean Middle income category actually lives on ₹233.9 - ₹467.8 per day (as per the 2021 PPP exchange rate you have mentioned ) or ₹85K - ₹1.7 Lakhs per year .
In the Indian context identifying oneself as middle class is based on the mindset, and not based on income. Some indicators: Travel AC 2nd class or reserved seating in chair car; Eat out once a month in a decent hotel, but not consider more than fine dining outlets in a year. Perhaps just graduated from a two wheeler to a low end four wheeler. In current situation one may prefer a OLA over owning a four wheeler.
So can I send this video to our FM ?
This report will make the people of Bangladesh and Pakistan very happy who always think that all indians are very poor and they were rich only because of political corruption they are now facing this and that....
It should be classified based on household income and what is percentage of expenses… you might earn 2 lakh per month and spend 90% of it then you are poor class..
Insightful
What about debt, family headcount, self employment, other liabilities? 2 people may earn 1 lac but one has 4 members to support with a home loan and the other one 2 members with parental inheritance
These numbers should be inflation adjusted
As the cost of living in Bangalore more then 1500 per day was considered as lower middle class
There is nothing wrong. She was raised in a middle class family. She can understand what and who are middle class
Wow...very interesting information
In Indian every people think themselves as middle class😅
Really insightful video👍🏼.
Govt. be like "Itna sach bhi ni bolna tha"😂
1.5 lac annual income person doesn't go to Starbucks..am i missing anything here
How are you being relevant by using a 2011 data for referring a middle class in 2023?