Analysing India’s cycle of deprivation and affluence through income mobility trends
This article examines income mobility in India between 2014 and 2025, drawing on data from the Consumer Pyramids Household Survey. It highlights a concerning trend where downward mobility—households slipping into lower income brackets—has nearly doubled, while upward mobility remains stagnant. The study reveals significant disparities across caste and religious lines, with Scheduled Castes (SC) and Muslim households facing the greatest hurdles in upward movement. Urban areas show slightly better mobility than rural ones, where nearly 29% of households are worse off than a decade ago. The findings suggest that despite headline growth, entrenched inequality and economic vulnerability persist, necessitating policies focused on social protection and employment-intensive sectors.
Key Points
- Downward mobility in India increased from 14% in 2015 to 26.8% in 2025, indicating rising economic vulnerability.
- Upward mobility remains muted, particularly for Scheduled Castes and Muslim households, who face systemic barriers and discrimination.
- Rural areas have been hit harder by economic volatility compared to urban centers, with nearly 29% of rural households worse off than in 2014.
- The study emphasizes that higher income dispersion at the district level is systematically associated with greater downward mobility.
- Policy focus must shift from headline growth to strengthening public health, education, and social protection to restore economic progress.
Exam Facts
- Data source: Consumer Pyramids Household Survey by the Centre for Monitoring Indian Economy (CMIE).
- Period of study: 2014-2025, divided into two sub-periods (2014-19 and 2019-24).
- Downward mobility rate: Increased from 14% to 26.8% over the decade.
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