Socio Economic Classes Of India

Socio Economic Classes of India Rakhi Dutta

India as a Consumer Market 

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Presently 12th largest consumer market in the world(17 trillion Indian rupees) Poised to become the 5th largest by 2025(70 trillion Indian rupees) Indian spending patterns will evolve, with basic necessities such as food and apparel declining in relative importance, and categories like communications and health care growing rapidly.

Economic classes  Deprived

(< Rs.90,000)  Aspirers (Rs.90,000- Rs.200,000)  Seekers (Rs.200,000- Rs.500,000)  Strivers (Rs.500,000- Rs.1,000,000)  Global Indians (Rs.1,000,000)

All India Spends      

 

Food & Grocery -35.9% Rent –13.6% Education—6.2% Fuel & Transport— 6.2% Apparel & Accessories—5.2% Savings & Investments— 4.1% Communication— 4.1% Books & Music— 3.1%

Food & Grocery 40.00% 35.00% 30.00% 25.00%

Rent & Utilities Education

20.00% 15.00% 10.00%

Fuel & Transport

5.00% 0.00%

Apparel & Accessories Savings &Investmen ts

The Concept The socioeconomic classification (SEC), groups urban Indian households on the basis of education and occupation of the chief wage earner (CWE: the person who contributes the most to the household expenses) of the household into five segments (SEC A, SEC B, SEC C, SEC D and SEC E households in that order). This classification is more stable than one based on income alone and being reflective of lifestyle is more relevant to the examination of consumption behaviour.

Constitution  SEC

A&B, constitute over a quarter  The mid economic class, SEC C constitutes 21%  Lower two SECs account for over half the population.

Table: Socio-Economic Classes

Projected Base: All Urban Households (in 000s): SEC A SEC B SEC C SEC D & E

IRS (1998-99) % 49174

NRS (1990-91) & IRS(1998-990) % increase in avg. MHI

10 18 21 51

113 113 117 127

Table: Socio-Economic Classes in Rural India Education of chief wage earner

Professional degree Graduation/ PG College SSC/HSC Class 4-Class 9 Up to class 4 Self-learning Illiterate

Type of House

Pucca

Semi-pucca

Kuchcha

R1

R2

R3

R1 R1 R2 R3 R3 R3 R4

R2 R2 R3 R3 R3 R4 R4

R3 R3 R3 R4 R4 R4 R4

Behaviors in SECs

Behaviors in SECs

Behaviors in SECs