India to launch first household income survey in over five decades to track welfare impact

Income survey to capture government incentives

India is preparing to launch its first comprehensive Household Income Survey in more than five decades. The landmark exercise aims to map how much Indian households earn and from what sources, including cash transfers from both central and state welfare schemes.

According to a pre-testing report by the National Statistical Office (NSO), the survey—expected to be rolled out in 2026—will collect granular data on income distribution, wages, government transfers, and welfare support across both rural and urban India.

The new questionnaire includes a dedicated section on social assistance benefits, covering centrally funded schemes such as PM-Kisan Samman Nidhi and the National Social Assistance Programme (NSAP), as well as state-led initiatives like Ladli Behna Yojana (Madhya Pradesh), Gruha Lakshmi (Karnataka), and Kalaignar Magalir Urimai Thittam (Tamil Nadu).

Sensitive Questions, Reluctant Respondents

The NSO’s pre-testing exercise, conducted across 15 regional offices, revealed that while most respondents understood the survey’s purpose, about 95 percent viewed income-related questions as sensitive—especially those concerning tax payments, savings, and financial assets.

Respondents were also hesitant to disclose details of earnings from multiple income sources.

To address this, the technical expert group chaired by Surjit S Bhalla has recommended a public outreach campaign, the use of regional languages, and simplified question phrasing to ensure better accuracy and participation when the survey is conducted nationally.

Beyond Income Levels

The survey will go beyond measuring earnings to explore how social and economic factors influence access to welfare benefits. It will classify households by socio-religious group, literacy level, and occupation, allowing policymakers to assess which communities are benefiting most from welfare schemes and which remain underserved.

It will also document income from financial assets—such as provident funds, bonds, dividends, and interest-bearing instruments—as well as earnings among the elderly through pensions and remittances.

Policy Significance

Once released, the 2026 Household Income Survey will offer a detailed picture of how households make and receive money, helping policymakers track income inequality, welfare coverage, and the efficacy of social safety nets in a rapidly evolving economy.