Impact of per capita income on middle class anuj

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Impact of per capita income on middle class anuj

  1. 1. IMPACT OF PER CAPITA INCOME ON MIDDLE CLASS PREPARED BY:- KSHAMA CHOPRA NIKITA SINGAL RISHIBHA RAI SULTAN OMAR SALIM MANSI CHUGH ANUJ DIWAKAR
  2. 2. INTRODUCTION • Per capita income or income per person is the quotient of income to the population size. • It is a measure of all sources of income in an economic aggregate, such as a country or city. • Per capita income is used as an indicator of the economic welfare of a county's residents. • Per capita income is also a measure of the wealth of a population of a nation when compared with other countries.
  3. 3. Per Capita Income In India • India's per capita income is found by the Atlas method and by employing official exchange rates for conversion. • Economist have been giving considerable importance to the performance of states visa vie each other in terms of per capita income.
  4. 4. Current Situation • The average income of Indian has grown by 10.5% to Rs 44,345 in2009-10 as against Rs 40,141 in 2008-09, at the current price. • The per capita income slightly exceeded its estimate calculated by Central Statistical Organisation(CSO) in 2009-10. • At 2004-05 prices, the size of GDP stood at Rs 44,64,081crore in 2009-10 as against Rs 41,54,973 crore in 2008-09.
  5. 5. Challenges ahead • To quadruple the per capita income by 2020. • To adopt a longer term perspective • To attain a level of development far higher than other countries. • To learn from experiences of other countries which have already passed through these stages of development.
  6. 6. Middle class • The middle class is a phenomenon of the capitalist era. • The World Bank estimates that the global middle class is likely to grow from 430 million in 2000 to 1.15 billion in 2030. • The bank defines the middle class as earners making between $10 and $20 a day.
  7. 7. • The McKinsey Global Institute, projects India's middle class will grow from 50 million to 583 million people in the next two decades.
  8. 8. THE MIDDLE CLASS IN INDIA • The middle class is not (yet) the biggest segment of india’s overall population. • The middle class is a growing consumer market. a) Forecast to triple as a share of india’s total consumption over next 15 years. b) As income increases, spending increase and variety of spending also increase.
  9. 9. c) New range of products are being geared towards middle class.
  10. 10. d) The use of financial services has increased.
  11. 11. • The financial crisis has hit the middle class, but optimism about the future reigns.
  12. 12. Drivers of changing consumption patterns • Affluence • Urbanization • Globalization
  13. 13. Macroeconomic growth (gdp growth)
  14. 14. (Income growth)
  15. 15. Sources of growth
  16. 16. Urban/ rural growth
  17. 17. Consumption by category (share-of- wallet evolution)

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