Per capita income up by 14.2% in 2006-07

If adjusted against inflation, the per capital income at current prices rose by 8.1 per cent during the year and was estimated at Rs 22,553 as against Rs 20,858 for the previous year.

Analysts said the spurt in households’ income levels explains the boom in retail sector, sale of more two and four wheelers, mobiles and branded products in urban and non-urban areas.

Commenting on the impact of 9.6 per cent GDP growth during 2006-07 on household income, HDFC Chief Economist Abheek Baruah said, “Since the pie has increased, it would be reflected in the personal income.”

On an average, the households spent as much as Rs 20,714 at current prices, about 70 per cent of their income, and saved the remaining. In the previous year, the households spent 71.83 per cent of their income and saved the rest.

Interestingly, the highest growth in personal expenditure was noticed in communication sector that comprises mobiles, TV and newspapers. The total spent on this sector grew as much as 35.6 per cent during the year.