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. 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. 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. 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. 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. 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. • The McKinsey Global Institute, projects India's
middle class will grow from 50 million to 583
million people in the next two decades.

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.

10. c) New range of products are being
geared towards middle class.

11. d) The use of financial services has
increased.

12. • The financial crisis has hit the middle class,
but optimism about the future reigns.

13. Drivers of changing consumption
patterns
• Affluence
• Urbanization
• Globalization

14. Macroeconomic growth (gdp growth)

15. (Income growth)

16. Sources of growth

17. Urban/ rural growth

18. Consumption by category (share-of-
wallet evolution)