So, salaries in India may be rising.. but so are the daily costs! Specifically on Education, Health, transport and clothing & food! Net-net.. then the effect is still probably the same on savings? At least people are able to spend more….. Is it better and people happier now that they can take their car to work instead of the DTC bus amidst all that new pollution now? Well.. when my car came even I never thought of that! 🙂
Despite a 30% rise in per capita income of employees between 2000-2006, spending of the salaried class went up by 100% on transport and communication, 80% on health and medicare and 60% on education against 35% and 20% on clothing and food, according to an analysis done by the Associated Chamber of Commerce and Industry of India (Assocham). The Assocham’s analysis on "Changing Patterns for Consumption" from 2000-2006 found that health and education have taken precedence over other expenditure for the average salaried employee.
The study was conducted after a meeting of Assocham’s regional teams over the past week and based on analysis of data from various sources. It said that the average per capita income of salaried employees in organised and unorganised sectors was measured at less than Rs 14,000 per annum in 2000. This had risen on average by a mere 30% by the end of 2006. However, it was noticed that a majority of salaried employees in lower and middle-class preferred to tame their habits and adjusted their consumption pattern by allocating more money to transport and communication, health and medicare and education rather than for clothing and food.
Pre-2000, the salaried class was spending a good deal of its income on food and clothing but that seems to have taken a U-turn from 2000 onwards with liberalisation setting in.
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