05 January 2010

India's Major/Largest Cities

India has 8 cities with more than 50 lakh people:

RankCityPopulation*
1Bombay2.2 crore
2Delhi1.9 crore
3Calcutta1.6 crore
4Madras74 lakh
5Bangalore66 lakh
6Hyderabad64 lakh
7Poona55 lakh
8Ahmedabad54 lakh

These are India's major/largest cities. These 8 cities account for 50% of India's urban population.

*2010 estimates.

03 January 2010

The Size of India's Middle Class

Question: How big is India's middle class?
Answer: 5% (Yes, only five percent)

2001: NCAER

Income ClassMonthly Family Income*% of Total Population
Poor< Rs 7,500
72%
Lower ClassRs 7,500 – Rs 17,000
22%
Middle ClassRs 17,000 – Rs 85,000
5%
Rich> Rs 85,000
0.5%

2005: McKinsey

Income ClassMonthly Family Income*% of Total Population
Poor< Rs 7,500
54%
Lower ClassRs 7,500 – Rs 17,000
41%
Middle ClassRs 17,000 – Rs 42,000
4%
Upper ClassRs 42,000 – Rs 85,000
1%
Rich> Rs 85,000
0%

McKinsey also makes forecasts for the relative sizes of the different income classes for the years 2015 and 2025:

Income Class20152025
Poor35%22%
Lower Class43%36%
Middle Class19%32%
Upper Class1%9%
Rich1%2%

So McKinsey's picture is roughly like this:

Year
Middle Class
Lower Class
Poor
2005
5%
40%
55%
2015
20%
45%
35%
2025
40%
35%
20%
  • Middle class will increase from 5% to 40%.
  • Poverty will go down from 55% to 20%.
  • Lower class will hover around 40%.
*The original data gives the annual incomes. I have converted them to monthly incomes, and rounded them off.