First-Ever Household Income Survey in 2026

Syllabus: GS2/ Governance, GS3/ Economy

Context

• The Ministry of Statistics and Programme Implementation (MoSPI) will conduct the first-ever Household Income Survey in 2026.

About

• This will be India’s first comprehensive, nationwide survey focused entirely on household income, including both rural and urban segments.
• Lead Agency: Conducted by the National Sample Survey Office (NSSO) under the Ministry of Statistics & Programme Implementation (MoSPI).
• Technical Expert Group (TEG): It was constituted by MoSPI  under the Chairmanship of Dr. Surjit S. Bhalla. 
• Mandate of TEG:
  • Finalize definitions, concepts, survey tools, and sampling methods,
  • Adopt best practices from countries like the US, Australia, Canada, and South Africa to address prior underreporting,
  • Guide estimation methods, data quality protocols, result finalization, and publication timelines,
  • Incorporate digital tools to capture technology-driven impacts on wages and income.

Significance of the Household Income Survey

• First Accurate Mapping of Income Distribution: Despite decades of data on consumption, poverty, and employment, India lacks official statistics on household income levels and distribution.
  • The survey fills a critical gap, enabling policymakers to understand income inequality, inter-regional disparities, and the actual spread of economic growth.
• Targeting of Welfare Schemes: The government can more effectively design and implement subsidies, social protection, and direct benefit transfers, moving toward evidence-based and inclusive policymaking.
• Analysis of Technology Impact: The survey will assess how digital platforms, gig work, automation, and informal employment influence household earnings, an area underexplored by existing datasets.
• Benchmark for Fiscal and Tax Policy: It can provide a realistic baseline for taxation policies, income slabs, and fiscal redistribution strategies by capturing actual income flows across sectors and classes.
• International Comparability: Countries like the USA, Australia, and South Africa regularly conduct income surveys. 

Challenges in Conducting the Survey

• Disclosure Hesitation: Households often understate or conceal income, especially from informal or cash-based sources, fearing taxation or legal scrutiny. 
• Complex and Diverse Income Sources: Indian households earn from multiple, fragmented streams—agriculture, daily wages, remittances, informal trades, and pensions.
  • Capturing and verifying these streams, especially in rural settings, is technically demanding.
• Mismatch Between Income, Consumption, and Savings: Previous surveys found reported income lower than total consumption and savings, suggesting gaps in recall accuracy or deliberate misreporting. 
• Seasonality and Volatility of Earnings: In sectors like agriculture and construction, incomes fluctuate widely across months or seasons. A single-point survey may fail to capture these variations unless longitudinal or repeated visits are used.
• Training of Field Enumerators: Gathering reliable income data requires well-trained surveyors who can navigate complex interviews and probe sensitively without causing discomfort or suspicion.

Way Ahead

• Institutionalising the Survey: Rather than a one-off exercise, the Household Income Survey should be institutionalised at regular intervals, allowing tracking of trends over time and enabling better long-term planning.
• Detailed training of field investigators is essential, not only in technical methods but also in building trust with respondents, navigating sensitive income questions, and understanding local income patterns.

Source: PIB