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Sent: Tuesday, August 03, 2010 3:06 AM
To: Triumph Content
Subject: [TriumphOfContent] 'India has more rich people than poor now'


  



 'India has more rich people than poor now' 

Prabhakar Sinha, TNN, Aug 1, 2010, 01.07am IST
NEW DELHI: For the first time ever, the number of high-income households in
India has exceeded the number of low-income, the National Council of Applied
Economic Research (NCAER) has estimated. 

In its report, "How India Earns, Spends and Saves", released on Saturday,
the NCAER estimated that despite the economic slowdown of the last three
years, the number of high-income households should have reached 46.7 million
by March 2010, exceeding the 41 million households counted as low-incomes. 

If true, this would be a remarkable turnaround within just a decade. It
started with just 13.8 million households described as high-income, or
earning more than Rs 1.8 lakh per annum at 2001-02 prices. Meanwhile, 65.2
million households were classified as low-income or earning less than Rs
45,000 per year. The NCAER estimated that middle-income households, or those
earning between Rs 45,000 and Rs 1.8 lakh per annum, rose sharply from 109.2
million to 140.7 million in the decade. 

A new report says that the slowdown in the growth in the last three years of
the decade had the maximum impact on middle income households. Though in
absolute terms the number of middleclass households grew from 135.9 million
in 2007-08 to 140.7 million by 2009-10, in percentage terms it fell
marginally from 62% of all households to 61.6% in the same period. 

Interestingly, the slowdown did not impact the expansion in the number of
high-income households, which grew from 16.8% to 20.5% of all households in
the last two years. The fall in the number of low-income households was also
sharp, from 21.1% to 17.9% during the period. 

NCAER, in the report also estimated the number of families having income
between Rs 2 lakh and Rs 10 lakh per annum, which is close to the World Bank
definition of middle class, at 28.4 million by 2009-10. The number of such
middle-class households was 4.5 million in 1995-96 and 10.7 million in
2001-02. The report said that two-thirds of the Indian middle class is to be
found in urban India and that trend has continued in the last 15 years also.
India has one of the highest savings rates in the world, with savings
constituting an estimated 36% of the GDP.
http://timesofindia
<http://timesofindia.indiatimes.com/articleshow/6242324.cms?prtpage=1>
.indiatimes.com/articleshow/6242324.cms?prtpage=1

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