Indicus Analytics, An Economics Research Firm www.indicus.net
the lowest poverty levels. Among the smaller states,Meghalaya, Manipur and Mizoram follwed by Arunachaltend to have poverty levels in the single digits. Orissa,Bihar, UP and MP have amongst the highest poverty levelsamongst the larger states. Note that these states alsotend to have low inequality levels, indicating that overallthese states are poor with high levels of deprivation.A comparison of the State level GDP growth and povertyreduction shows that indeed, those states that have hadhigher levels of growth have been able to reduce povertylevels much more than those with lower GDP growth. Thisis an important learning for policy and marketers alike.Indeed, greater growth is a very good predictor of the risein consumer buying power.
Thetop 112 citiesaccount for about 200 million Indianswhich is more than 60% of urban India. These citiesconstitute a market of consumers whose combined annualincomes are Rs 13,261 billion. Their combined savings areRs 3,516 billion which is about 26.5% of income.The large cities have a significantly lower savings rate.The top 10 cities have a savings rate of under 22%,whereas the gamma and delta cities (82 in number) havesavings rate around 29%. Clearly the EMI culture hasn’tpercolated down to too many cities in India. Aninteresting piece of statistics is that the 2nd rung of citiesare the biggest savers – thebeta citiessave as much as32% of their income and reinforce the old adage thatsavings and investment are the route to growth.The Southerners are by far the largest savers with asavings rate of over 31%. The West (it includes Rajasthanand MP) has the lowest savings rate of just 23%. WithinWest, Gujarat is a high saver with 27% savings rate