Key Points
According to People Research on India's Consumer Economy's (PRICE) survey tracking the status of the economic well-being and welfare of households based on the information collated at significant periods - 2016 (pre-Covid), 2021 (during Covid, with separate figures for Wave 3.0 that year), and 2023 (post-Covid) - the following picture unfolds:..
With more economic restrictions being implemented to combat the virus, income levels declined for most households.The hardest hit were poorest households (Q1 bottom 20%), whose income in 2021 dropped by a whopping 52% from their income level in 2016.The household income of the lower- middle segment (Q2) declined by 32%, and that of the middle (Q3) by 9%..
Post-pandemic economic recovery saw household disposable income rebounding in 2022-23 (post-Covid).The sharpest recovery was experienced by the bottom-most households (Q1), whose income levels grew by 75% over income in 2021 (Covid period).For the lower-middle group (Q2), growth was 52%.Richest households (Q5) also saw their income rise by 10%, reflecting the overall recovery post-Covid period and a more equitable income distribution.The gap in household disposable income between the lowest- and highest-income quintiles declined in 2022-23.Households in the bottom-most income group (Q1) increased their share of household disposable income from 3.3% in 2020-21 to a high of 6.2% in 2022-23, while those in the highest income quintile (Q5) decreased their share from 56.3% to 46.4% during the same period.Shares of the poorest and richest households in 2015-16 were 7% and 44.6%, respectively..
While the poorest households still have some catching up to do to restore their income level after being dealt a crushing blow by the pandemic, the remarkable recovery in the short period also points to a significant fact..
The recovery was aided by benefits received through welfare schemes of both state and central governments, which helped bolster support for those households that lost their earnings due to the pandemic..
