Context

In a significant step toward evidence-based policymaking, the Ministry of Statistics and Programme Implementation (MoSPI) will conduct India’s first-ever Household Income Survey in 2026.

About the Survey

• Scope: This will be the country’s first comprehensive national survey focused solely on household income, covering both rural and urban areas.
• Implementing Agency: The National Sample Survey Office (NSSO) will carry out the survey under MoSPI.

Technical Expert Group (TEG)

• Chaired by Dr. Surjit S. Bhalla, the TEG has been set up to guide all aspects of the survey.
• Mandate includes:
  • Finalizing definitions, methodologies, and survey tools.
  • Learning from global best practices (USA, Australia, Canada, South Africa).
  • Ensuring data quality, managing publication timelines, and integrating digital methods.
  • Capturing the role of technology in shaping household income.

Significance of the Survey

• Filling a Critical Data Gap: While India has rich data on consumption, poverty, and employment, there is no official dataset on actual household income levels or distribution. This survey will address that gap.
• Better Policy Targeting: Enables more accurate design and delivery of welfare programs like subsidies, DBTs, and social protection schemes.
• Understanding Technology’s Role: Will provide insights into how gig work, automation, and digital platforms are transforming income patterns.
• Foundation for Tax and Fiscal Policy: Offers a more realistic baseline for taxation brackets, fiscal redistribution, and economic reforms.
• International Alignment: Puts India on par with countries that regularly conduct income surveys, enhancing global comparability.

Key Challenges

1. Reluctance to Disclose Income: Especially in informal sectors, households may hide or underreport income due to fear of tax implications.
2. Multiple and Fragmented Income Sources: From agriculture and wages to remittances and pensions, income is often diverse and difficult to quantify, especially in rural areas.
3. Mismatch Between Income, Consumption & Savings: Past surveys revealed inconsistencies, indicating issues with recall accuracy or intentional misreporting.
4. Income Seasonality: Sectors like agriculture or construction see fluctuating earnings, which single-visit surveys might miss unless conducted over time.
5. Field Staff Training: Accurate data collection hinges on well-trained enumerators who can handle complex and sensitive interviews.

Way Forward

• Institutionalization: The Household Income Survey should become a regular feature, not a one-time exercise, enabling long-term economic planning.
• Capacity Building: Survey teams must be trained not only in technical skills but also in cultural sensitivity and trust-building, especially when dealing with informal and variable income sources.

Source: Press Information Bureau (PIB)