• Embed Doc
  • Copy Link
  • Readcast
  • Collections
  • CommentGo Back
Download
 
 
Indicus Analytics, An Economics Research Firmhttp://indicus.net/Blog/Index.php 
TheBottom of The
 
Indian Pyramid
The Indian pyramid has too large a bottom - Not very flattering for a lady aspiring for a leaner and meaner constitution
.
Who exactly are the BOP (Bottom of the Pyramid)consumers? Our research based on availablesecondary data provides us with income,expenditure and savings profile for six incomeclassifications. These classifications are based onhousehold incomes. We define the bottom twoclasses (less than 75,000 pa and 75,000 to150,000 pa) as the BOP consumers. Ourestimates for2008-09, show that of the total 70 millionurban households, 39.5% or 27.7 million are BOP,by ourestimates. In the rural segment BOPs aremore prevalent, as many as 81.2% of the 159.3million rural households are BOP. This is a veryhigh proportion, and tells us that in spite of themoderate economic successes over the last 15years, we have a long way to go.The good news is that the direction is positive. In2006-07, our estimates show that urban BOPswere 45.3% of the households and rural BOPhouseholds constituted 84.3% of the households.However, a cursory look at the pace of changeshows that it is clearly not good enough. For
 
 
Indicus Analytics, An Economics Research Firmhttp://indicus.net/Blog/Index.php 
instance, at this rate it will take rural householdsat least 25 years to reach the proportions thaturban households have, which itself is not veryflattering.
Source:Market Skyline of India
The urban rural divide in income is quite stark.39.5% of the urban BOP households on aggregateearn only 15% of what the upper segment earnsand one can hope that this segment will moveupwards very fast. In rural India though, the BOPare so large in proportion (81% of the households)that they account for almost half the total incomeof rural India. Urban India is of course better off,having a marginally higher aggregate income thanrural India, though it is less than half the ruralhouseholds in numbers.
of 00

Leave a Comment

You must be to leave a comment.
Submit
Characters: ...
You must be to leave a comment.
Submit
Characters: ...