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LATEST NEWS UPDATES | Tale of two Indias: Income of Poorest 20% Tanks 53% in 5 years, Richest 20% Rises 39%

Tale of two Indias: Income of Poorest 20% Tanks 53% in 5 years, Richest 20% Rises 39%

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published Published on Jan 24, 2022   modified Modified on Jan 25, 2022

-Newsclick.in

The poorest, whose annual income surged by 183% between 2005 and 2016, have been most impacted by COVID-19, shows survey

In a K-shaped economic recovery since COVID-19 hit India, there was a massive plunge of 53% in the annual income of the poorest 20% of Indian households from 2015-16 to 2020-21. Besides the drastic fall in their annual income, which was rising since 1995, the share of the poorest 20% in the total household income dropped from 5.9% in that year to 3.3% in 2021.

The latest data, part of ICE360 Survey 2021, conducted by Mumbai-based non-profit organisation People’s Research on India’s Consumer Economy (PRICE), also show that the annual income of the richest 20% jumped by 39% in the same five-year period. Similarly, their share in the total household income rose from 50.2% in 1995 to 56.3% in 2021.

“The data reflects that the casual labourers, petty traders and household workers among others in Tier 1 and Tier 2 cities got hit most by the pandemic. During the survey, we also noticed that while in rural areas people in the lower-middle-income category (Q2) have moved to the middle-income category (Q3), in the urban areas the shift has been downwards from Q3 to Q2. In fact, the rise in the poverty level of urban poor has pulled down the household income of the entire category down,” said Rajesh Shukla, MD and CEO, PRICE.

The survey, which was conducted between April and October 2021 and covered 200,000 households in the first round and 42,000 households in the second round and spread over 120 towns and 800 villages across 100 districts, shows that the urban poor were most affected by the pandemic, drastically reducing their income.

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Newsclick.in, 24 January, 2022, https://www.newsclick.in/Tale-two-Indias-Income-Poorest-20%25-Tanks-53%25%20-5-years-Richest-20%25-Rises-39%25


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