The share of the middle 40% of the population shows notable differences between household surveys and WID estimates. Household surveys report a stable income share for this group, ranging from 43.9% to 46.6% over the years, indicating economic stability for this segment.

In contrast, WID estimates reveal a significant decline in the middle 40%'s share, dropping from 40.8% in 2004-05 to just 27.3% in 2022-23. This divergence underscores the inability of WID estimates to capture the contributions of non-taxed middle-income households, which are crucial to India’s economy. Household surveys provide a more accurate and consistent portrayal of the middle-income population, reflecting the true economic situation for this group.