India’s First Household Income Survey

India takes a bold step in income data collection

India’s First Household Income Survey: The Ministry of Statistics and Programme Implementation (MoSPI) is set to launch India’s first-ever Household Income Survey in 2026. For decades, India relied on consumer expenditure to estimate income patterns, but this new approach directly targets income data. It promises a more accurate reflection of how families actually earn. A Technical Expert Group (TEG) has been formed to guide this major shift in survey design and execution. This group will ensure that the data captured is not just reliable but also globally comparable.

India’s earlier attempts to capture income data

India has tried to map household incomes since the 1950s, starting with consumer expenditure surveys. Later, the Integrated Household Survey of the 1960s also tried to measure incomes. However, these surveys often produced strange results — income was reported lower than what families were spending or saving. This mismatch raised concerns about the accuracy of such data. Even in the 1980s, when the need for better income data was acknowledged again, no national-level income survey could be successfully implemented.

Why India needs income data today?

Seventy-five years after independence, India’s economy has undergone deep changes. From agriculture-heavy employment to a mix of services, startups, and digital workspaces, the nature of earning has evolved. Yet, our data tools haven’t kept pace. The per capita Gross National Income (GNI) for 2024-25 stands at Rs 2.31 lakh, an 8.7% growth over the previous year. But without income-based surveys, it’s hard to know who is earning more and who is left behind. Such gaps make it difficult to design effective policies, especially in welfare and taxation.

Role of the expert group

The newly created TEG, led by economist Surjit Bhalla, includes renowned scholars from institutes like the Indian Statistical Institute and NCAER. Their job is to define how income is measured, what counts as income, and how to avoid common errors. They are also integrating global best practices. The idea is to make this survey not just useful for India, but comparable with income surveys worldwide.

Other MoSPI efforts to understand economy

MoSPI has already been active in collecting data. Their Periodic Labour Force Survey (PLFS) now includes monthly income data from households. Besides that, the ministry also conducts surveys on unincorporated enterprises and service sector performance. The upcoming results from the Annual Survey of Industries and the Household Social Consumption – Health Survey are expected to add more depth to economic planning.

Looking ahead

The Household Income Survey is more than just a data collection project. It represents India’s growing need for smart, detailed insights into how people earn and live. With this, India is finally filling a major gap in its economic data system, one that has been open since independence.

Static Usthadian Current Affairs Table

India’s First Household Income Survey: