National Survey of Indian Consumers (ICE 360° Survey, 2014) INFOGRAPHICS ice 360° People Research on India’s Consumer Economy (C110- Second Floor, Naraina Vihar, eer ea Tel : 011-45566389, W : www.ice360.iniae 360° About PRICE "PRICE is an independent, not-for-profit research centre, a think tank’ and tacts tank’ engaged in building and disseminating seminal knowledge and insights about India's Macro Consumer Economy and Citizen's Environment, for use in ‘formulating public policy andin shaping business strategy. '= The core of PRICE's work focuses on "how India, eams, spends, saves, lives, thinks, accesses public goods and amenities". = PRICE is committed to generating longitudinal data that will allow for realistic Projections of India’s household incomes, consumption expenditures and savings forthe coming decade. = PRICE's work also aims at enriching policy targeting via insights on key socioeconomic, ‘state ofnation‘and'inelusion* indicators, Nolte. (22014, Peete Rasearch on Ia’ Cansurear Economy (PRICE), New Oe nd lights reserved. Developed and published in ini. The contents of is publica ‘ee ose as rearence or dab bu conmercal se 9 sly prone. Reproaucon a dsauton in whol or pat n any mea. nekng lectonie bermisblupondue sexnonleget atta compe rouree a flws- SouoIoes60: Survey 2014 Naonl Survey nian Coneumer (Ws) by People Res inaa's Conimer Eeonomy (PRICE), Ary unaunossed eprctan of sianstanorransiaeon hi pbleaon af mostearon oe gia aren fl orn pa) {nif undendan ow anny roc ee or batalla or damages and ermina prosesuton PRICE does rapide any norton any party facta to damages amass by aturdpary aga he cre container Discimer: Tis roporis pushed by Poople Resoarch on na's Consurar Economy, anindependon| nolo proftrescrch Tat4ank engage bldngand sssominatng Seminal nowindge and rare neghts sou aats Consoma Eeonamy ae wal os Inds lures Emuronman Tho nrsatoncantaed herein sores rom PRICE ‘rotary data cleted under conto PRICE by eoverl paneled elwark agentes parol eE360 Suvey 20% Natonal Survey ean Consumers NSIC) ‘Foeifonnaton nts publestonathougn belaved obs accurt, sna Quarrtaed and may be saccuata, PRICE Naso foancal idly wnateoeverin conection way, =10000 Total % Distribution of villages 56.7% 23.3% 16.1% 3.1% 0.8% 100.0% °% engaged in agriculture 61% 54% 45% 26% 25% 48% Distribution of villages by major point of sale of agriculture produce used by majority of farmers (%) Retailer 45.6 34.3 24.0 199 328 0387 Wholesale traders 15.2 347 295 40.0 355 229 Village mandi 22.6 135 19.4 227 78 199 Government mandi 67 102 WA 27 12000 94 Others 28 73 100 148 ns 94 ESS IN EM TESINCOME GROWTH AND DISTRIBUTION Even though the ratio of household income between the rich 20% and the poor 20% have reduced since 2004-05 and will continue to do so, by 2020 well over a third of the increase in our national income will belong to the top 20% earning households. However, by that time middle India (rest 60%) will start realizing the benefits of the trickledown effect th Population Quintile based Income/HH (Rs. 000) Share of India’s Income % on Per Capitaincome 2004-05 2013-14. 2020-21 2004.05 2013-14 2020-21 India-Q1 (Bottorn 209%) oat 136.7 2246 52 66 76 Indlia-Q2 (2194-40%) 99.2 208.6, 344.6 a7 11.0 126 Indlia-Q3 (4195-60%) 139.1 2479) 384s, Re 15.0 162 Indiia-04 (6195-80%) 220.1 3158, 4371 20.6 aa 206 India-Q5 (Top 20%) 5192 669.3 860.1 527 461 426 Allindia 219.5 335.6 475.4 100.0 100.0 100.0 ea 7RURAL INDIA CONSISTS OF MANY SHADES Just as there exists a wide gap between urban and rural in terms of availability of basic amenities, rural within presents a picture of sharply contrasting layers Brteernr ts aero AMENITIES (PERCENTAGE OF Oe Dre Th) Breet Tha) = Sone Poneto eer oon SS crn con Caron te cored Cine eer a oy Cnet Coro Coenen to Total Pee ec ent Pen Poe te] Ewan oon corn Cro ecco na Peery end Cocoon ia Creed een Totat ror wit Sear nen}SITTING ON A MINE While socio-cultural elements largely determine whether Indians use gold for savings or investment, the new monetization scheme has potential SHARE OF CWE(X6) AGREEING FOR OPTIONS POSED BY INCOME HIERARCHY Rich (20%) ll Next 60% Poor (bottom 20%) GIFTING IS THE MOST IMPORTANT DEMAND DRIVER BEHIND PURCHASE OF GOLD Primary reason behind investing in gold (percentage of CWEs who have made gold purchase) Poor Middle Rich All india (bottom 20%) (middle 60%) (top 20%) Others Ease of liquidity I Gifting Purpose | Future investment ESS RSTO TE STRURAL-URBAN CONTINUUM AND THE LESSONS FOR INDIA Rural and urban inequality can undermine the gains of overall economic growth of the nation. What is needed is planned, sustainable growth of smart cities and villages so that the 33 343 S44 YS URRY YSYSSY SEY ENG Ri aca Carry CNet oer ety cnn rany ihr ATT) rece eT) per pe red reece eect rey Brace) PEC} eee a Co Pee eee oe RURAL (TOTAL)RURAL DEVELOPMENT NEEDS A REALITY CHECK RURAL INDIA IS NO LONGER PURELY AGRARIAN with majority of households either earning their livelihood from non-farm activities or a combination of farm and non-farm incomes. RURAL HOUSEHOLD TYPE AND LEVEL OF EARNINGS CMe 9 Cr aT) A Ag Cre ont) CO Tee a Oar Tacs eer) Dry cry) res cI] cL Ce Te 189,374 Fr) cx Per a) 2 92,230 at 6% Ce rd 7) 4% oy eects BOC UTe Bele a ah oe) a By Source: ICE 360? Survey (October 2014) from People Research on India’s Consumer EconomyHEALTHCARE SPEND PUSHING \ HOUSEHOLDS BELOW POVERTY LINE y At levels of current incomes and savings, a non-routine health expenditure requirement of just Rs.100,000 will force over 80% of Indian households into seeking debt. ae Health expenditure and vulnerability 'e) Population Quintile %Households with NO or yp of households vulnerable if a based on Per Capita negative SURPLUS —_aeitional annual health expenditure is — Income INCOME (Current income Allindia 30 86 7 99 ‘Source: [CE360" Survey (October 2014 from People Research on india's eeePULSES CAN RESTORE . INDIA’S NUTRITION NEEDS 2 Our pulses consumption has dramatically reduced from about 60 gm/person in 1951 to 37 gm right now, and there is an urgent need to reverse this if India has to catch up with neighbouring countries on average per capita al consumption of quality protein Pa OA an CU ac CUR EUL Daa UL} CO Ca) SO nC Der D Cnc oR) Tse crea) PROTEIN FOODS cer Dee ere card Pre naar Die Cree Par SoM outro) oy Co oleae coer Sra The bottom 20% spend less than 40% of the all India average spending on a meal and less than 60% of what the top 20% spend ESSE TTSFINANCIAL RISK CONTINUES TO DOG INDIAN HOUSEHOLDS India’s preference for saving money in cash or passbook savings coupled with limited life insurance penetration especially in rural India indicates a certain vulnerability to financial shocks and inadequate safety nets for the bulk of our low income households LIFE INSURANCE INSURED VERSUS UNINSURED HOUSEHOLDS: A PROFILE BY MAJOR SOURCE OF HOUSEHOLD INCOME source of share of Surplus Income % of households income insure (oftever incomeatter deduction Own Ea Households — Srtotel expenaiture, Rs annum) ay pe 7 Insured Uninsured Insured Uninsured Households households households households Self employed - 27% 34474 20,159 o% 2% Sgriculture Self employed 28% 62.334 38,940 24% 6% Ron-agriculeure salaried 51% 94,533 45,658 23% 5% Wage labour 15% 11,167 12,763 3% 1% Others 22% 79,245 27,824 26% 2% Total 30% 60,017 24,562 17% 3% ESE SOI SN eeeALAND OF SAVERS Majority of Indian households defer consumption for posterity irrespective of their economic status a 8 & ree en V4 ees) (Bottom 20%) (21%- 40%) (41% 60%) Paes UUM CMU cnn Ue sateen | Sta ee UTA Meee ee a eo co GeFINANCIAL INCLUSION ONLY WHEN SERVICE PROVIDERS RAISE AWARENESS Across all levels, Indian households prefer liquidity over speculation when it comes to savings, choosing to keep cash at home or in banking instruments rather than investing in the market. ‘Savings portfolio (major flows in 2013-14) within households at different PCI quintiles (in %) India-gt India-Q2 —India-Q3_—Indie-Q¢ —India-@5 (Bottom 20%) | (21%%-40%) (41%-60%) _(61%-£0%) |Top 20%) Capital market linked investments 3 4 5 6 8 incl. Life insurance Non formal instruments, incl. SHG, 2 chit funds and NBFCs 3 2 “ 2 3 Physical assets include real estate, < 1 a | 2 gold and jewellery Source, ICE 360° Survey (Gctover 2014) from People Research on India’s Consumer Economy (PRICE}INDIA’S HOUSEHOLD | DEBT BURDEN | HHD with banka/e = HHDw/obanka/e Total Outstanding debt in USD billion 24.89 2.05 26,94 Number of HHD with outstanding 7 i AGHELG FiOrTTAPSGUITES 50 Million 8.5 Million 58.5 Million As high as 50 million households with banking access had actually taken a loan from informal sources which they were still servicing 29 million Indian households had some outstanding debt with a bank in 2013-14 360? Survey (October 2014) from People Research on India's Consumer EconomyWOMEN ARE STILL FAR AWAY FROM REALISING INCOME PARITY There is a great deal of disparity between participation of men and women as earners in the workforce, both in terms of remunerative participation as well as average wages received 425.6m \ 393.8m aged 16-59 aged 16-59 ww Ey LW pe 69.1m are earners are earners PNualeE Mieco) ial) Annual income rs, 1,32,000 r43,700 auc Proportion of males aged Proportion of females aged De Neh ie) BES ea cy Source: ICE 360° Survey (October 2014) from People Research on India’s Consumer Economy (PRICE)INDIA SHINING INDIA’S GROWTH STORY IS FINALLY SEEING SIGNS OF DECENTRALISATION Ree eet Beery Proceed stots aaa Stee ee elias | 28 Se oe oO eee eeeINDIAN CONSUMPTION BASKET: RICH VS. POOR, Expenditure Index* (All India= Rs. 100) Da creer *The annual per capita expenditure at all India level havent Rs. 26,500 whieh Is equal to 100. ere eee)National Survey of Indian Consumers (ICE 360° Survey, 2014) ICE 360° Survey, 2014 was the first household level primary survey conducted by PRICE covering an all-India representative sample of 20,195 households with earners selected from a listing of 1,01,534 households. The survey primarily focussed on providing household level, insightful and relevant information on economic and social well-being of Indian households including social inclusion, especially access to public goods and infrastructure, for the public domain to aid in advocacy and evaluation of the effectiveness and appropriateness of economic and public policy. Some of the key themes of the Indian ‘consumer economy, captured by the survey, included household level income, expenditure, saving patterns, social inclusion, and financial optimism and life style indicators. One of the key focus areas of the survey was to provide a better and sharper, understanding of EMiddle Indiaf by defining it and profiling it- and assessing the impact it can potentially have in boosting Indiafis future prospects, as a successful and stable country, as a growing economy, as a preferred destination for future developmental interventions such as FDI etc. The survey had two other riders as two additional modules- the first on @old purchase and investment behaviour of Indian householdsfi and the second on Zwo-wheeler ownership and future purchase intention of Indian households Sample Size and Allocation Sample Blocks/ Villages Listed Detail Household | Households Number of | Sample Clusters Districts | Districts Metros 10 200 20,159 4,000 Boom Towns 18 128 12,917 2,559 Niche Cities 39 198 19,865 3,960 Rest of Urban 184 3,679 URBAN 710 71,486 14,198 Developed Rural 69 6,870 1,379 Emerging Rural 10,176 2,019 Under Developed Rural 13,002 2,599 RURAL 30,048 5,997 ALLINDIA 1,01,534 | 20,195EMC oM ech SR) www.ice360.in’ ae or write to Beene ee eee eee mridusmita.bordoloi@ice360.inTeas Seo People Research on India’s Consumer Economy