This article has multiple issues. Please help improve it or discuss these issues on the talk page. (Learn how and when to remove these template messages) This section needs to be updated. Please help update this article to reflect recent events or newly available information. (September 2017) This article's tone or style may not reflect the encyclopedic tone used on Wikipedia. See Wikipedia's guide to writing better articles for suggestions. (August 2021) (Learn how and when to remove this template message) (Learn how and when to remove this template message)

Income in India discusses the financial state in India. With rising economic growth and prosperity, India’s income is also rising rapidly. As an overview, India's per capita net national income or NNI was around 1.97 lakh rupees in 2022.[1] The per-capita income is a crude indicator of the prosperity of a country. In contrast, the gross national income at constant prices stood at over 128 trillion rupees.[1] The same year, GNI growth rate at constant prices was around 6.6 percent. While GNI and NNI are both indicators for a country's economic performance and welfare, the GNI is related to the GDP or the Gross Domestic Product plus the net receipts from abroad, including wages and salaries, property income, net taxes and subsidies receivable from abroad. On the other hand, the NNI of a country is equal to its GNI net of depreciation.

Financial year data

GDP per capita, GNI per capita and NNI per capita of India[2][3]
Year At current prices (INR) At 2011-12 prices (INR)
GDP per capita GNI per capita NNI per capita GDP per capita GNI per capita NNI per capita
2021-22 172,913 170,222 150,007 107,670 105,955 91,481
2020-21 146,087 144,120 126,855 100,032 98,629 85,110
2019-20 149,701 148,261 132,115 108,247 107,191 94,270
2018-19 142,328 140,804 125,883 105,526 104,377 92,241
2017-18 130,061 128,655 115,224 100,035 98,925 87,586
2016-17 118,489 116,070 103,870 94,752 93,639 83,003
2015-16 107,342 106,096 94,797 88,617 87,565 77,659
2014-15 98,405 97,241 86,647 83,091 82,107 72,805
2013-14 89,796 88,678 79,118 78,348 77,370 68,572
2012-13 80,519 79,573 70,983 74,600 73,722 65,538
2011-12 71,610 70,980 63,462 71,610 70,980 63,462

India's nominal per capita income was US$1,670 per year in 2016, ranked 112th out of 164 countries by the World Bank,[4] while its per capita income on purchasing power parity (PPP) basis was US$5,350, and ranked 106th.[5] Other estimates for per capita gross national income and gross domestic product vary by source. For example, India's average GDP per capita on PPP basis in 2009, according to The Economist, was US$5,138, with significant variation among its states and union territories. Goa had the highest per capita PPP GDP at US$14,903, while Bihar the lowest with per capita PPP GDP of US$682 as of 2015[6] In rupee terms, India's per capita income grew by 10.4% to reach Rs.74,920 in 2013-14.

While India's per capita incomes were low, the average household size and consequent household incomes were higher. India had a total of 247 million households in 2011, with an average of about 4.9 people per household, according to Census of India.[7]

Estimates for average household income and the size of India's middle income households vary by source. Using World Bank's definition of middle income families to be those with per capita income between $10 to $50 per day,[8] the National Council of Applied Economic Research[9] of India completed a survey and concluded there were 153 million people who belonged to middle income group in 2006. In contrast, Meyer and Birdsall and Tim Light used a different survey and estimated the number of Middle-Income population to be about 70 million in 2009-2010.[10] These groups, as well as the World Bank, estimated in their 2011 reports that if India's economy continues to grow per projections, India's middle income group would double by 2015 over 2010 levels, and grow by an additional 500 million people by 2025. This would make it, with China, the world's largest middle income market.[11]

Compared to other countries, income inequality in India is relatively small as measured by Gini coefficient. India had a Gini coefficient of 32.5 in the year 1999- 2000;[12] India's nominal Gini index rose to 36.8 in 2005, while real Gini after tax remained nearly flat at 32.6.[13]

The states of India have significant disparities in their average income.[14] Bihar was by far the poorest in India, and per capita income was low in its neighbouring states, along with Uttar Pradesh, Jharkhand, Jammu & Kashmir, Assam, Manipur, and Nagaland.[15] The higher income states include Goa, Delhi, Haryana, Sikkim, Telangana, Maharashtra, Tamil Nadu, Gujarat, Himachal Pradesh, Punjab, Uttarakhand, and Kerala.[16][17][18]

Rural-urban gap

Gini coefficient of India and other countries according to the World Bank (2018).[19] Higher Gini Index means more income inequality.
Gini coefficient of India and other countries according to the World Bank (2018).[19] Higher Gini Index means more income inequality.

As in other countries, residents of Indian cities have a higher per capita income and standard of living than rural residents. Towns and cities make more than two-thirds of the Indian GDP, even though less than a third of the population live in them.[20]

The Economic Survey of India 2007 by OECD concluded that:

"At the state level, economic performance is much better in states with a relatively liberal regulatory environment than in the relatively more restrictive states".[20]

The analysis of this report suggests that the differences in economic performance across states are associated with the extent to which states have introduced market-oriented reforms. Thus, further reforms on these lines, complemented with measures to improve infrastructure, education and basic services, would increase the potential for growth outside of agriculture and thus boost better-paid employment, which is a key to sharing the fruits of growth and lowering poverty.


Percentage share in total national household disposable income by Class (2016)[21]

  Quintile 5 (Top 20%) (44.9%)
  Quintile 4 (22.1%)
  Quintile 3 (15.2%)
  Quintile 2 (10.8%)
  Quintile 1 (Bottom 20%) (7%)

Distribution of Annual Household Income in India (in pounds/annum)[22]

  <£2,000 (50%)
  £2,000 to £4,500 (30%)
  £4,500 to £11,000 (14%)
  £11,000 to £23,000 (4%)
  >£24,000 (2%)
Taxpayers in India by Group[23]
Income Group No. of tax payers (in lakhs)
Up to ₹5 lac
₹5-10 lac
₹10-20 lac
₹20-50 lac
₹50 lac to ₹1 crore
Over ₹1 crore

Source: IT Department

See also


  1. ^ a b "Per capita national income in India FY 2015-2020 Published by Statista Research Department, Oct 16, 2020".
  2. ^ "GDP per capita of India". StatisticsTimes. Retrieved 27 December 2021.
  3. ^ "Provisional Estimates of Annual National Income, 2021-22". Ministry of Statistics & Programme Implementation, India. Retrieved 15 July 2022.
  4. ^ "GNI per capita, Atlas method (current US$)". World Bank. 1 May 2014. Retrieved 16 July 2014.
  5. ^ "GNI per capita, PPP (current international $)". World Bank. 1 May 2014. Retrieved 16 July 2014.
  6. ^ Per capita of Indian states
  7. ^ Households data for India Archived 26 July 2014 at the Wayback Machine Census of India 2011, Govt of India (2013)
  8. ^ Kharas, H. (2010). The Emerging Middle Class In Developing Countries. Working Paper 285, OECD Development Center, Paris
  9. ^ National Survey of Household Income and Expenditure (NSHIE)/Market Information Survey of Households (MISH) NCAER India (2013)
  10. ^ Meyer and Birdsall, New Estimates of India's Middle Class Center for Global Development (2012)
  11. ^ Kharas, The Emerging Middle Class in Developing Countries Brookings Institution (World Bank Conference, 2011)
  12. ^ "Fact Sheet: Gini Coefficient" (PDF). Source: The World Bank (2004) and Census and Statistics Department (2002). Legislative Council Secretariat Hong Kong. Retrieved 1 August 2007. Note: The Gini coefficient in this datasheet is calculated on a scale of 0 to 1 and not 0 to 100. Hence, on a scale of 100 India's Gini coefficient (1999-2000) was 32.5 rather than 3.25
  13. ^ Gehring, Keith; Kulkarni, Kishore G (2008). "Economic growth and income inequality in India" (PDF). ((cite journal)): Cite journal requires |journal= (help)
  14. ^ Datt, Ruddar; Sundharam, K.P.M. "27". Indian Economy. pp. 471–472.
  15. ^ Comparing Indian states and territories, CEIC, The Economist, (June 2011).
  16. ^ "Development Policy Review". World Bank.
  17. ^ Sachs, D. Jeffrey; Bajpai, Nirupam; Ramiah, Ananthi (2002). "Understanding Regional Economic Growth in India" (PDF). Working paper 88. Archived from the original (PDF) on 1 July 2007. ((cite journal)): Cite journal requires |journal= (help)
  18. ^ Kurian, N.J. "Regional disparities in india". Archived from the original on 1 October 2005. Retrieved 6 August 2005.
  19. ^ "GINI index (World Bank estimate) | Data". Retrieved 23 July 2020.
  20. ^ a b "Economic survey of India 2007: Policy Brief" (PDF). OECD. Archived from the original (PDF) on 6 June 2011.
  21. ^ "India's Quintile 5 own 45% of the income". December 2016.
  22. ^ "India Demographics—Income".
  23. ^ "Times of India— Number of Taxpayers".