Friday, January 28, 2011

Are you rich? Or are you poor?

Are you rich? Or are you poor?

This is a small research which I have done recently based on the net annual household/family income before tax in Delhi and/or NCR.

At least most of the figures are approximate(plus minus) (some facts, and the others safe yet calculated estimated based on my research).

I have assumed that Delhi has a population of about of about 1.5 cr so the number of families should be around 50 lacs.

I am talking of both black/white money combined from all sources including dividends, interest, rent etc.

I have assumed that for every white rupee, there is at least around 1-3 rupees which is black.

%age of families: Bottom 25-50% of the population
USA: <$60,000
Delhi: < 8 lacs annual

%age of families: 50% (At least 15-20 lac families in Delhi)
USA: $60,000+
Delhi: 10,00,000 – 18,00,000
Net/Tax paid monthly income/Cash in hand(per month): 50-100k
Lower level Govt employees, lower/lowest level professionals, freshers.

%age of families: 15% (Around 7-8 lac families in Delhi)
USA: $120,000+
Delhi: 20,00,000 - 35,00,000
Net/Tax paid monthly income/Cash in hand(per month): 1L-2L
Very average/poor lifestyle.
Can afford to have one/two basic cars, but 1 hour daily journey may make the petrol bill almost unaffordable.
They can barely buy brands like Levis except during sale.
They can afford to eat out in low end restaurants, but not very frequently.
They can afford to go for a domestic trip to an average place and spend modestly.
Foreign education/travel, out of reach.
Basic engineers/doctors, lower level managers.

%age of families: <3-5% (Around 2-3 lac families in Delhi)
USA: $175,000(USA)-250,000(NY)
Delhi: 40,00,000 – 75,00,000
Net/Tax paid monthly income/Cash in hand(per month): 2.5L-4L
They can afford to live an acceptable lifestyle in the eyes of most people.
They can afford to keep 2-3 low/medium priced cars.
The richer of this segment can afford to shop for brands like Tommy, CK, Guess at at malls at full retail.
They can afford to eat out in a decent restaurant at least once a week, and many can afford five stars once every (few) month(s).
The rich of this segment can afford yearly foreign travels to countries like Singapore/Hongkong for a week or so. The baseline can afford such a trip about once in 2-3 years or so. But even the rich in this segment can’t afford yearly trips for the entire family to European countries, especially for a week or longer.
Some of them can afford foreign education, others need to struggle and still need some form of scholarship. Even those who can afford it, will really struggle paying a 1 cr per 1 degree bill.
Majority of the doctors/lawyers/professionals/managers, small businessmen

MASS AFFLUENT (Comparable to High Net Worth Individuals/Millionaire Households)
%age of families: <1% (Around 20-40k families in Delhi, approx)
USA: $350,000(USA)-500,000(NY)
Delhi: 1,00,00,000 – 2,50,00,000
Net/Tax paid monthly income/Cash in hand(per month): 5L-12L
They can afford to have a reasonable lifestyle in any part of the country.
Although people who are borderline can’t afford Accords, many of them do buy one. They can easily afford to keep multiple cars in the range varying from Hondo City/SX4 to Superb/Laura/Civic and even Accord/Mercedes for those around the 2 cr annual mark.
They can afford to buy brands like Tommy Hilfiger and above, Gant, sometimes Ed Hardy/Diesel (depending on the exact income) at full retail.
They can afford to eat regularly/frequently in good restaurants and at least once or twice a month in five stars.
They can afford foreign education but not to an unlimited education eg: If there are 3 children and all of them want to do both Bachelors plus Masters abroad at the rate of about 1 cr per degree, then that could be a problem.
They can afford foreign travel (in low/medium priced five stars) at least once a year to a moderately expensive country
Well off doctors/lawyers/executives, medium size businessmen

%age of families: 0.1%(Perhaps less than 5000 families in Delhi, out of 50 lacs)
USA: $1,600,000
Delhi: 3,00,00,000 – 7,50,00,000
Net/Tax paid monthly income/Cash in hand(per month): 15L-40L
Usually they can afford to maintain reasonable living standards in most parts of the world.
They can easily afford Accord or even Mercedes E(+) class.
They can afford to buy brands lke Gucci, Prada etc at full retail.
They can afford to have at least one meal a week in a five star, assuming 1 meal = 4-5 people, perhaps 2-3 meals a week if not more as well.
They can easily afford foreign education to any extent required.
Richest doctors/lawyers/CEOs, Directors of Ltd companies, celebrities, big businessmen

RICH (Comparable to Ultra High Net Worth Individuals)
%age of families:0.01% (Around 500 or so)
USA: $5,500,000
Delhi: 10,00,00,000
Net/Tax paid monthly income/Cash in hand(per month): 50L or more
Usually these people can afford to live in any part of the world and still be called rich.
They usually don’t need to buy anything less than a Mercedes E/S equivalent of India
They can afford to buy pretty much any brand in the market.
They can afford to keep nearly all/all their meals in five stars.
Richest few of the country, most of them are the richest industrialists of the country and some are super rich celebrities (usually only actors)


Anonymous said...

Good research man.. I agree to the most of it with you. However, there is a lot of black money that self employed professionals/ businessmen can hide and lead a regal lifestyle without paying taxes. I happen to know a guy whose father is a big farmer and they earn about Rs. 5,00,000 a month but they show an income of Rs.1,200 /month to the income tax department. on top of that they have several 100s acres of land which is worth 100s of crores.

Now, compared to these buggers a professional/manager who is employed in a private LTD company has to show their full income and pay tax like 5,000,000 when all they earn is Rs. 2,000,000.

The Poor is always crushed and the rich enjoys the life truly.
what an injustice of life..

Akshay said...

Ya, but officially, only 1 lac families out of about 50+ lacs in Delhi have an income of 10+ lacs a year. Whereas I have assumed that figure to be like 5-10 lac families or so.

So I am assuming that at least 70%+ of the money is black.

Also, the black money is anyway concentrated.

Anonymous said...

how can you prove that your post is genuine ?
on what basis you have done your research?

Akshay said...

Research various reports present online and apply your brain to it, especially for the black and white money conversion.

Also, look around yourself, makes it pretty obvious.

But yes, depends on your caliber. Will take time, effort and brains to get this job done! :P

Anonymous said...

so u must get it patent..
sell ur efforts to contribute a little bit..
good luck..

Anonymous said...

This is just too much to believe! Hey, would you please avoid just stealing your sentences from some one Else's article? Hope you check before you copy and paste the content! and do a spell check.

Akshay said...

Tell me one place where to find this info, posted before the date I did this! I fucking challenge you!

Akshay said...
This comment has been removed by the author.
Anonymous said...

Lame article :|