Prasad’s Classification BG Prasad scale was first introduced in 1961 and was revised by the author himself in 1968 and 1970. After Kuppuswamy SES scale this scale is the most widely used SES scale for classifying the people according to the Socioeconomic Status. It is applicable to both urban and rural population. It is based on per capita monthly income It is computed as: 푃푒푟 푐푎푝푖푡푎 푚표푛푡ℎ푙푦 푖푛푐표푚푒=(푡표푡푎푙 푚표푛푡ℎ푙푦 푖푛푐표푚푒 표푓 푡ℎ푒 푓푎푚푖푙푦)/(푡표푡푎푙 푚푒푚푏푒푟푠 표푓 푓푎푚푖푙푦" " ) Socioeconomic Classification The new system The new SEC system is used to classify households in India. It’s based on two variables: Education of chief earner Number of “consumer durables” ( from a predefined list)-owned by the family. The list has 11 items, ranging from ‘electricity connection’ and ‘agricultural land’-to cars and air conditioners We have 12 grades in the new SEC system, ranging from A1 to E3 Earlier classifications were based on the assumption that higher education leads to higher income thus higher consuming potential. But we know that this may not be true always. A trader or a retailer with no qualification can earn more income than a Post graduate executive, but SEC will categorize the traders/retailers not as SEC A1or A2. So, in order to combat this problem, the Government came up with the new SEC system on 3 May 2011. The list of durables will become less discriminating over a period of time as more people acquire more durables. The list has to be changed from time to time - in another few years probably all of them will have gone. For instance, mobile is not one of the discriminating goods because today almost everyone has it.

2. • BG Prasad scale was first introduced in 1961 and was
revised by the author himself in 1968 and 1970.
• After Kuppuswamy SES scale this scale is the most
widely used SES scale for classifying the people
according to the Socioeconomic Status.

3. • It is applicable to both urban and rural population.
• It is based on per capita monthly income
It is computed as:
𝑃𝑒𝑟 𝑐𝑎𝑝𝑖𝑡𝑎 𝑚𝑜𝑛𝑡ℎ𝑙𝑦 𝑖𝑛𝑐𝑜𝑚𝑒 =
𝑡𝑜𝑡𝑎𝑙 𝑚𝑜𝑛𝑡ℎ𝑙𝑦 𝑖𝑛𝑐𝑜𝑚𝑒 𝑜𝑓 𝑡ℎ𝑒 𝑓𝑎𝑚𝑖𝑙𝑦
𝑡𝑜𝑡𝑎𝑙 𝑚𝑒𝑚𝑏𝑒𝑟𝑠 𝑜𝑓 𝑓𝑎𝑚𝑖𝑙𝑦

4. Income (in Rs./month) Social Class
6261 and above I (Upper Class)
3099-6260 II (Upper Middle Class)
1835-3098 III (Middle Class)
949-1834 IV (Lower Middle Class)
948 and below V (Lower Class)

6. ROADMAP
• What is the new SEC
system?
• What was need for
the new SEC system?
• How do we classify a
household in the
new SEC system?
• Conclusion

7. The new SEC system is used to classify households in
India. It’s based on two variables:
 Education of chief earner
 Number of “consumer durables” ( from a predefined
list)-owned by the family. The list has 11 items,
ranging from ‘electricity connection’ and ‘agricultural
land’-to cars and air conditioners
We have 12 grades in the new SEC system, ranging from
A1 to E3
What is the new SEC system?

8. • Earlier classifications were based on the assumption
that higher education leads to higher income thus
higher consuming potential.
• But we know that this may not be true always.
• A trader or a retailer with no qualification can earn
more income than a Post graduate executive, but SEC
will categorize the traders/retailers not as SEC A1or A2.
So, in order to combat this problem, the Government
came up with the new SEC system on 3 May 2011.

9. How do we classify household in the new classification?

10. Q1a Please take a look at this list and tell me which of these items do you have at home? (It could be
owned by you, your family, or provided by the employer or it could be available in the house you live
in; but it should be for the use of just you or your family)
Q1bDoes your family own any agricultural land, by agricultural land I mean land that is currently
under cultivation or plantation?
Q2 Could you tell me something about the person who makes the biggest contribution to the running
of the household.To what level has he studied?
• Electricity connection
• Ceiling fan
• LPG Stove
• Two Wheeler
• Color TV
• Refrigerator
• Washing Machine
• Personal Computer/ Laptop
• Car/Jeep/Van
• Air Conditioner

12. Items Owned Circle
Electricity Connection 01
Ceiling Fan 02
LPG Stove 03
Two Wheeler 04
Color TV 05
Refrigerator 06
Washing Machine 07
Personal Computer 08
Car/Jeep/Van 09
Air Conditioner 10
Agricultural Land 11
Number of Items
Owned = 8

13. Education
No. of
Durables
Owned
Illiterate Literate but
no formal
school/
school upto 4
years
School: 5 to 9
years
SSC/HSC College
Diploma (Not
Grad)
Grad/
PG(General)
Grad/ PG
(Professional)
1 2 3 4 5 6 7
None E3 E2 E2 E2 E2 E1 D2
1 E2 E1 E1 E1 D2 D2 D2
2 E1 E1 D2 D2 D1 D1 D1
3 D2 D2 D1 D1 C2 C2 C2
4 D1 C2 C2 C1 C1 B2 B2
5 C2 C1 C1 B2 B1 B1 B1
6 C1 B2 B2 B1 A3 A3 A3
7 C1 B1 B1 A3 A3 A2 A2
8 B1 A3 A3 A3 A2 A2 A2
9+ B1 A3 A3 A2 A2 A1 A1

14. • The list of durables will become less discriminating
over a period of time as more people acquire
more durables.
• The list has to be changed from time to time - in
another few years probably all of them will have
gone. For instance, mobile is not one of the
discriminating goods because today almost
everyone has it.
Conclusion