Regional Consumer Report--Eastern Region of India

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Simplifying the Indian Consumer MarketRegional Consumer ReportEast India

IBMISeptember 2007

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Table of ContentsExecutive Summary ...............................................................................3Introduction ............................................................................................5Demographic Profile of East India ..........................................................7Spending pattern of East India .............................................................13Socio-economic Categorization of Eastern States ................................18Data Sources ........................................................................................19

Table of FiguresFigure 1: Overall Population of Eastern Region and Rest of India, 2007 &2025.......................................................................................................7Figure 2: State-wise Population of East India, 2007 & 2025 ..................8Figure 3: Area-wise Population of East India, 2007 & 2025....................8Figure 4: State and Area-wise Population of East India..........................9Figure 5: Gender-wise Population of East India, 2007 & 2025..............10Figure 6: State and Gender-wise Population of East India....................10Figure 7: Gender-wise Literate Population of East India.......................11

Figure 8: State-wise Literate Population of East India..........................12Figure 9: Gender-wise Worker Population of East India........................12Figure 10: State-wise Worker Population of East India..........................13Figure 11: Total Annual Spending in East Indian States (2004-05, USD).............................................................................................................14Figure 12: State-wise Annual Per Capita Expenditure in Rural East India.............................................................................................................14Figure 13: State-wise Annual Per Capita Expenditure in Urban East India.............................................................................................................15Figure 14: Population Distribution of East India by Per Capita AnnualSpending..............................................................................................16Figure 15: State-wise Population Distribution of Rural East India by PerCapita Annual Spending.......................................................................17Figure 16: State-wise Population Distribution of Urban East India by PerCapita Annual Spending.......................................................................17

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Executive Summary

The Eastern region of India has a current population of 312million and represents 28 percent of the total Indianpopulation.

The expected growth rate of population for East India over

2007 to 2025 is lower than the expected Indian populationgrowth rate over the same period.

The rate of urbanization in the Eastern region of India is much

lower than that of India.

About 51.4 percent of the population of East India is male.

Eastern India has a literacy rate of 59.7, which is much lowerthan the national literacy rate of 64.8.

While male literacy is lower than the national average, female

literacy in the East is much higher than the national averageof 43.9.

Workers account for 37.1 percent of the population of East

India.

The ratio of both male and female workers is lower than the

averages for India.

In 2004-05, East India is estimated to have spent USD 39,433million, with USD 28,435 million having been spent in ruralEast India and USD 10,997 million having been spent in urbanEast India.

Rural East India spends an average of $125 per person per

annum while urban East India spends about $258.

Nagaland has the highest per capita expenditure among all

the Eastern states.

Bihar has the lowest per capita annual expenditure in both

rural and urban East India.

There were about 5 million people in rural East India that, onan average, spent more than $304 per annum in 2004-05;while about 22 million people spent in the range of $181 -$304 per person per annum.

In urban East India, about 2 million people spent in the range

of $208 - $363, while about 6 million spent in the range of$363 - $668 per person per annum.

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West Bengal has the highest number of persons belonging to

the $304 & more expenditure category in rural East India.

Only a few of the rural Eastern states are socio-economicallybetter off than an average Indian state.

The average rural Eastern state is socio-economically worse

off than the average for India.

Mizoram is the most socio-economically advanced stateamong all the Eastern States.

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Introduction

The Eastern region of India comprises many small states, includingArunachal Pradesh, Assam, Nagaland, Manipur, Mizoram, Tripura,Sikkim, Meghalaya, and the larger states of Bihar, Jharkhand, WestBengal, Chhattisgarh and Orissa. One of the four largest metros ofIndiaKolkatais the capital of West Bengal. The Eastern region ofIndia is known for its rich and diverse culture, handicrafts, martial artsand its pristine scenic beauty. The state of Bihar is one of the mostsocio-economically backward states of India.

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Demographic Profile of East India

Overall population of East IndiaThe Eastern region of India has a current population of 312 million andwith a growth rate of around 20 percent over the next 18 years, it isexpected to reach a size of 374 million by 2025. Currently, East Indiaaccounts for 28 percent of the total Indian population. The expectedgrowth rate of population for East India over 2007 to 2025 is lowerthan the expected Indian population growth rate of 23 percent over thesame period.

Figure 1: Overall Population of Eastern Region and Rest of India, 2007 &

2025

Population of Eastern Region of India

28% 27%

72%73%

0

200

400

600

800

1000

1200

1400

1600

2007 2025

Thousand

Rest of India

East India

Source: Office of the Registrar General & Census Commissioner of India,

Population Projections

State-wise population of East India

Bihar, with a total population of 92 million is currently the mostpopulated state in East India. West Bengal is next, with a population ofabout 86 million. The other Eastern states are much smaller than thesetwo states.

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Figure 2: State-wise Population of East India, 2007 & 2025

Population of Eastern States of India

23

39

86

28

45

100

3

0.58

2

0.96

2.50

30

2

92

1.18

29

3

3.01

4

0.70

1.16

3

37

113

1.43

35

Arunachal Pradesh

Assam

Bihar

Chhattisgarh

Jharkhand

Manipur

Meghalaya

Mizoram

Nagaland

Orrisa

Sikkim

Tripura

West Bengal

Millions

2025

2007

Source: Office of the Registrar General & Census Commissioner of India, PopulationProjections

Rural and urban population of East India

The rate of urbanization in the Eastern region of India is much lowerthan that of India. Currently, only about 19 percent of East India isurbanized. Even by 2025, 79 percent of the Eastern region would berural. While there are 59 million people in urban East India currently,by 2025 there would be about 78 million.

Figure 3: Area-wise Population of East India, 2007 & 2025

253297

59 78

0

100

200

300

Millions

2007 2025

Urban

Rural

Urban-Rural population of East India


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West Bengal has the highest number of people residing in urban areas.Bihar is next, with an urban population of about 9.6 million; however,

Bihar has one of the lowest rates of urbanization. Mizoram has thehighest rate of urbanization among all the Eastern states.

Figure 4: State and Area-wise Population of East India

Urban-Rural population of Eastern States, 2007

321

9,678

5,011

6,802

608

496

370

6,298

73 627

24,3

52

863

24,9

56

17,9

23

1,728

1,995

462

1,775

32,9

78 510

2,822

61,7

73

505

4,097

22,9

43

82,5

30

0%

20%

40%

60%

80%

100%

Arunachal

Assam

Bihar

Chhattisgarh

Jharkhand

Manipur

Meghalaya

Mizoram

Nagaland

Orrisa

Sikkim

Tripura

WestBengal

T

housand

Rural

Urban


Gender-wise population of East India

About 51.4 percent of the population of East India is male. While thereare 161 million males, about 152 million are females. The ratio ofmales to females is expected to remain the same even by the year2025 by when there would be about 191 million males and 184 millionfemales.

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Figure 5: Gender-wise Population of East India, 2007 & 2025

161

191

152

184

0

50

100

150

200

Millions

2007 2025

Females

Males

Gender-wise population of East India


Almost all the states of East India have a similar male to female ratio.Chhattisgarh and Manipur are the most equitable with a male tofemale ratio of 1. In Sikkim, Nagaland and Arunachal Pradesh about 53percent of the population is male.

Figure 6: State and Gender-wise Population of East India

Gender-wise population of Eastern States, 2007

624

14,954

47,896

11,514

15,316

1,179

1,266

494

1,127

19,883

310

1,767

44,394

560

14,099

44,312

11,419

14,429

1,157

1,234

464

1,019

19,393

273

1,682

41,731

0%

20%

40%

60%

80%

100%

Aru

nachal

Pr

adesh

Assam

Bihar

Chhattisgarh

Jharkhand

M

anipur

Meghalaya

Mizoram

Na

galand

Orrisa

Sikkim

T

ripura

West

Bengal

Thousands

Females

Males


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Literacy rates in East India

Eastern India has a literacy rate of 59.7, which is much lower than the

national literacy rate of 64.8. Males in East India have a literacy rate of70.4 while female literacy rate is about 48.3. While male literacy islower than the national average, female literacy in the East is muchhigher than the national average of 43.9.

Figure 7: Gender-wise Literate Population of East India

123115

87

56

-

20

40

60

80

100120

140

Million

Males Females

Literates

Population

(> 6 years)

Literate population of East India, 2001

Source: Census of India, 2001

Unlike, the male to female ratio, there is vast variation in the literacy

rates among the Eastern states of India. Mizoram has the highestliteracy rate of 88.8, while Bihar has the lowest of about 47.0. WestBengal has higher number of literates than Bihar, even though it issmaller in terms of overall population size.

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Almost 53 percent of the people in Mizoram work for their living.Sikkim is next followed by Chhattisgarh.

Figure 10: State-wise Worker Population of East India

Worker population of Eastern States, 2001

483 27,9

75

9,68

0

10,1

09

945 970 467 848 14,2

76

263 1,16

0

29,4

82

615

17,117

11,154

16,837

1,222

1,349

421

1,142

22,528 27

8

2,040

50,695

9,53

9

55,024

0%

20%

40%

60%

80%

100%

Arunachal

Assam

Bihar

Chhattisgarh

Jharkhand

Manipur

Meghalaya

Mizoram

Nagaland

Orissa

Sikkim

Tripura

WestBengal

Thousand Non

workers

Workers

Source: Census of India, 2001

Spending pattern of East India

Total Annual Expenditure

In 2004-05, East India is estimated to have spent USD 39,433 million,

with USD 28,435 million having been spent in rural East India and USD10,997 million having been spent in urban East India. Rural WestBengal spent the highest, followed by rural Bihar and urban WestBengal.

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Figure 11: Total Annual Spending in East Indian States (2004-05, USD)

Total Annual Spending in East Indian States,2004-05

15

3,27

7,31

2,03

31 8 15

3,36

8 35

8,80

91,

01

1 11

5,70

23

2,27

652 9 8

1,01

851,2

4

80

2000

4000

6000

8000

10000

Arunachal

Pradesh

Assam

Bihar

Chhattisgarh

Jharkhand

Manipur

Meghalaya

Mizoram

Nagaland

Orissa

Sikkim

Tripura

W

estBengal

MillionUSDoll

Rural Urban

Source: NSSO, 61stRound Survey, Level and Pattern of Consumer Expenditure & IBMIcalculations

Annual Per Capita Expenditure

Rural East India spends an average of $125 per person per annumwhile urban East India spends about $258. Nagaland has the highestper capita expenditure among all the rural states of East India.

Figure 12: State-wise Annual Per Capita Expenditure in Rural East India

Annual Per Capita Expenditure in

Rural East India (2004-05)

203143

110112112

161172

204266

105181

128148

125

Arunachal PradeshAssamBihar

ChhattisgarhJharkhand

ManipurMeghalayaMizoramNagaland

OrissaSikkim

TripuraWest Bengal

East India

US Dollars


In urban East India as well, per capita expenditure is the highest inNagaland. Mizoram is next, followed by Meghalaya. Bihar has thelowest per capita annual expenditure in both rural and urban EastIndia.

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Figure 13: State-wise Annual Per Capita Expenditure in Urban East India

Annual Per Capita Expenditure in

Urban East India (2004-05)

232 278

183260259

191313316

394199

291263

295258

Arunachal PradeshAssam

BiharChhattisgarhJharkhand

ManipurMeghalayaMizoramNagaland

OrissaSikkim

TripuraWest Bengal

East India

US Dollars


Population Distribution by Per Capita Annual Expenditure

There were only about 5 million people in rural East India that, on anaverage, spent more than $304 per annum in 2004-05; while about 22million people spent in the range of $181 - $304 per person perannum. In urban East India, about 2 million people spent in the range

of $208 - $363, while about 6 million spent in the range of $363 - $668per person per annum.

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Rural population distribution: East

India(Per capita annual spending, 2004-05)

87

22

114

5

0%

20%

40%

60%

80%

100%

No. in Millions

$304 & more

$181 - $304

$108 - $181

0 - $108


Figure 14: Population Distribution of East India by Per Capita Annual

Spending

Urban population distribution: East

India(Per capita annual spending, 2004-05)

12

6

23

2

0%

20%

40%

60%

80%

100%

No. in Millions

$668 & more

$363 - $668

$208 - $363

0 - $208


West Bengal has the highest number of persons belonging to the $304& more expenditure category in rural East India. Rural Orissa and Biharare the next highest contributors to the $304 & more expenditurecategory, with 0.55 and 0.47 million persons respectively. In rural WestBengal about 8 million people spent in the range of $181 - $304 percapita in 2004-05.

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Figure 15: State-wise Population Distribution of Rural East India by Per

Capita Annual Spending

Distribution of rural population of Eastern States based

on per captia annual spending, 2004-05

0.106

39 12 12

0.10 0.08 0.02

21

0.091.13 21

0.32

12

23 5 7

1.011.15

0.19

0.13

8

0.20

1.3128

0.25

44 1.02 1.32

0.30 0.52

0.19

0.31

2

0.11

0.26 80.100.04

0.140.05

30.060.550.050.030.180.360.470.39

0%

20%

40%

60%

80%

100%

A

runac

hal

Pra

des

h

Assam

Bihar

Chhat

tisgarh

Jhar

khan

d

Man

ipur

M

eghalaya

Mizoram

Nagalan

d

Orissa

Sikkim

Tripura

We

stBenga

l

No. in Millions

$304 & more

$181 - $304

$108 - $181

0 - $108


In urban East India, West Bengal has the highest number of persons inthe $668 & more expenditure category. West Bengal also leads interms of highest numbers in the $363 - $ 668 expenditure categorywith 3 million people. West Bengal; however, is also the state with thehighest number of people with expenditure lower than $208 per personper annum. Bihar is next, with about 5 million people in this category.

Figure 16: State-wise Population Distribution of Urban East India by Per

Capita Annual Spending

Distribution of urban population of Eastern States based

on per captia annual spending, 2004-05

0.05 0.99

52

20.32

0.090.07

3

0.02

0.24 9

0.040.86

10.77

1.33

0.13

0.10 0.13

0.11

1.28

0.03

0.136

0.010.43

0.370.41 0.49

0.01

0.08 0.070.09

0.360.01 0.07 3

0.01 0.02

0.02

0.06 0.14 0.12 0.17 0.01 0.07 0.02 1.220.00

0%

20%

40%

60%

80%

100%

Arunac

hal

Pra

des

h

Assam

Bihar

Chhat

tisgarh

Jhar

khan

d

Man

ipur

Meg

halaya

Mizoram

Nagalan

d

Orissa

Sikkim

Tripura

Wes

tBenga

l

No. in Millions

$668 & more

$363 - $668

$208 - $363

0 - $208


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Socio-economic Categorization of Eastern States

A broad socio-economic categorization of the Eastern states ispresented in Figure 17 and Figure 18. Figure 17 depicts the socio-economic categorization of rural East Indian states against the averagevalues of rural India. The horizontal axis represents the average ruralmonthly per capita expenditure in dollar terms while the vertical axisrepresents the state's literacy rate. The Eastern states of India and theaverage for India and the Eastern region are plotted and the red linesdemarcate four quadrants keeping the value of rural India at thecenter. States plotted to the right of the vertical red line have higherMPCE than the average Indian MPCE and states plotted above thehorizontal red line have higher literacy rates than the average of India.

Only a few of the rural Eastern states are socio-economically better offthan an average Indian state (See Figure 17). Mizoram is the mostsocio-economically advanced state among all the Eastern States. Mostrural Eastern states are worse off than average rural India. Bihar, Jharkhand, Assam, Orissa and Chhattisgarh are all worse off than anaverage rural Indian state, while Meghalaya and Arunachal Pradesh areworse off only in terms of literacy. The average rural Eastern state issocio-economically worse off than the average for India.

Figure 17: Socio-economic Categorization of Rural East Indian States

Socio Economic Categorization of RuralEastern States

Arunachal

Pradesh

Nagaland

AssamEast IndiaJharkhand

Bihar

IndiaChhattisgarhOrissa

W. Bengal Sikkim

Tripura Manipur

Meghalaya

Mizoram

40

50

60

70

80

90

100

0.0 5.0 10.0 15.0 20.0 25.0

MPCE (USD)

States'LiteracyRate

Source: Census of India 2001; NSSO, 61stRound Survey & IBMI calculations

Figure 18 depicts the urban counterpart of the socio-economiccategorization described in Figure 17. Urban East Indian states are

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plotted against the average values of urban India. The horizontal axisrepresents the average urban MPCE in dollar terms while the vertical

axis represents the state's literacy rate. The red lines demarcate fourquadrants keeping the value of urban India at the center.

In the case of urban East India, Mizoram, Nagaland, Sikkim and WestBengal are socio-economically better off than an average urban Indianstate, while urban Chhattisgarh, Orissa, Arunachal Pradesh andJharkhand are socio-economically worse off. Urban Tripura and Manipurare worse off than an average urban Indian state in terms of spendingper capita, although they are better off in terms of literacy and urbanAssam and Meghalaya are better off in terms of spending while worseoff in terms of literacy.

Figure 18: Socio-economic Categorization of Rural East Indian States

Socio Economic Categorization of Urban

Eastern States

Arunachal P.

Nagaland

AssamEast India

Jharkhand

Bihar

IndiaChhattisgarhOrissa

W. BengalSikkim

TripuraManipur

Meghalaya

Mizoram

40

50

60

70

80

90

100

0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0

MPCE (USD)

States'LiteracyRate

Source: Census of India 2001; NSSO, 61stRound Survey & IBMI calculations

Data Sources

Ministry of Statistics and Programme Implementation. National SampleSurvey Organisation.Level and Pattern of Consumer Expenditure, 2004-05, NSS 61st Round(July 2004-June 2005). December 2006.

Office of the Registrar General of India. Census of India. 2001

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Office of the Registrar General & Census Commissioner of India.Population Projections for India and States 2001-2026. Report of the

Technical Group on Population Projections Constituted by the NationalCommission on Population. May 2006 (Revised December 2006)

Population Division of the Department of Economic and Social Affairs ofthe United Nations Secretariat (2007). World Population Prospects: The2006 Revision. Highlights. New York: United Nations.

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Regional Consumer Report--Eastern Region of India

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