Hyderabad Leads Indian Cities in Lower Middle Class Income Growth

Hyderabad tops the list of Indian cities by average monthly income for the lower middle class, with residents earning Rs 44,000 in 2024, a 4.7% increase from last year. Pune ranks second with an income of Rs 39,000. The study by Home Credit also reveals that Hyderabad leads in fixed monthly expenses, which have risen to Rs 24,000. The report highlights that 50% of the monthly budget is spent on food and lodging, while education costs account for 15%. These findings underscore Hyderabad’s economic growth and the financial challenges faced by its residents.

Hyderabad Leads Indian Cities in Lower Middle Class Income Growth

Hyderabad Tops Income Chart for Lower Middle Class

Hyderabad has once again secured the top position among Indian cities based on the average monthly income of its lower middle class residents. According to “The Great Indian Wallet” study by Home Credit, a consumer finance provider, the average monthly income in Hyderabad for this demographic has risen to Rs 44,000 in 2024, marking a 4.7 percent increase from the previous year.

Income Growth Across Indian Cities

The study highlights significant income growth across various Indian cities. Pune follows Hyderabad with an average monthly income of Rs 39,000, showcasing a notable rise from Rs 35,000 in the previous year. Bangalore, Dehradun, and Jaipur also feature prominently on the list, each demonstrating substantial income increments.

Here is a detailed comparison of average monthly incomes in 2023 and 2024:

Fixed Expenses: Hyderabad Again at the Top

In addition to income, Hyderabad also leads in terms of average monthly fixed expenses. The city’s residents now face fixed monthly costs of Rs 24,000, up from Rs 19,000 in the previous year. These expenses encompass rent or mortgage payments, utilities, transportation, healthcare, and education.

Other cities, including Pune and Bangalore, have also experienced an increase in fixed expenses. Pune’s fixed costs have risen to Rs 21,000 from Rs 17,000, while Bangalore’s have escalated to Rs 22,000 from Rs 17,000.

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Here’s a breakdown of fixed monthly expenses across Indian cities:

Allocation of Fixed Expenses

The report further details that half of the monthly budget is allocated to food and lodging, reflecting the essential nature of these expenses. Education, which has seen rising costs, accounts for 15 percent of the monthly budget, highlighting the growing financial burden on families.

Hyderabad’s dominance in both income and fixed expenses underscores its significant economic growth and the financial pressures faced by its residents. The data from “The Great Indian Wallet” study provides valuable insights into the financial landscape of lower middle class households across India, revealing both opportunities and challenges in these urban centers.

Source: The Great Indian Wallet Study by Home Credit

Last Updated on June 27, 2024 4:02 pm by Admin

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