Infographics 2025

Discrepancies in Income Share Estimates: Household Surveys vs. WID Data for India's Bottom 50%

Rajesh Shukla

The income share of the bottom 50% of the population shows significant differences between household surveys and WID estimates. According to household surveys, the share fluctuates between 18.9% and 25.5% over time, with a notable recovery to 22.8% in 2022-23, reflecting the dynamic effects of economic policies and changes. In contrast, WID estimates consistently report a much lower and static share of around 15% since 2004-05.

This discrepancy highlights the underrepresentation of informal and lower-income earners in the WID estimates, while household surveys provide a more accurate and realistic depiction of the economic contributions of the bottom half of the population. This divergence emphasizes the importance of using comprehensive survey data to understand income distribution more effectively.