Hyderabad tops the list of Indian cities by average monthly income for the lower middle class, with residents earning Rs 44,000 in 2024, a 4.7% increase from last year. Pune ranks second with an income of Rs 39,000. The study by Home Credit also reveals that Hyderabad leads in fixed monthly expenses, which have risen to Rs 24,000. The report highlights that 50% of the monthly budget is spent on food and lodging, while education costs account for 15%. These findings underscore Hyderabad’s economic growth and the financial challenges faced by its residents.
Hyderabad Leads India’s Lower Middle-Class Income Rankings
Hyderabad, India – Hyderabad continues to secure its position as the city with the highest average monthly income for lower middle-class residents in India, according to the latest data from “The Great Indian Wallet” study conducted by Home Credit, a prominent consumer finance provider.
Rising Incomes in Hyderabad
In 2024, the average monthly income of lower middle-class individuals in Hyderabad has reached Rs 44,000, marking a notable increase of over 4.7 percent from the previous year. This growth highlights the city’s thriving economic landscape and its ability to support its lower middle-class population effectively.
Comparative Income Analysis
Pune follows Hyderabad in the ranking, with its lower middle-class residents earning an average monthly income of Rs 39,000. Other cities such as Bangalore, Dehradun, and Jaipur also show significant income levels, reflecting diverse economic growth across urban India.
| City | 2023 (Income in Rs thousand) | 2024 (Income in Rs thousand) |
|---|---|---|
| Hyderabad | 42 | 44 |
| Pune | 35 | 39 |
| Bangalore | 35 | 38 |
| Dehradun | 31 | 37 |
| Jaipur | 31 | 34 |
| Mumbai | 32 | 33 |
| Ahmedabad | 32 | 33 |
| Chennai | 29 | 32 |
| Kolkata | 29 | 32 |
| Delhi NCR | 30 | 32 |
| Patna | 29 | 31 |
| Bhopal | 28 | 30 |
| Chandigarh | 29 | 30 |
| Ludhiana | 24 | 30 |
| Ranchi | 26 | 29 |
| Lucknow | 25 | 29 |
| Kochi | 26 | 29 |
Fixed Expenses: Hyderabad Again Tops the List
In addition to leading in income, Hyderabad also ranks highest in terms of fixed monthly expenses. The average fixed expenses in Hyderabad have surged to Rs 24,000 in 2024 from Rs 19,000 in 2023. This encompasses essential costs such as rent or mortgage payments, utilities, transportation, healthcare, and education.
| City | 2023 (Fixed Monthly in Rs thousand) | 2024 (Fixed Monthly in Rs thousand) |
|---|---|---|
| Hyderabad | 19 | 24 |
| Pune | 17 | 21 |
| Bangalore | 17 | 22 |
| Dehradun | 15 | 21 |
| Jaipur | 16 | 20 |
| Mumbai | 20 | 20 |
| Ahmedabad | 17 | 18 |
| Chennai | 15 | 14 |
| Kolkata | 17 | 19 |
| Delhi NCR | 17 | 19 |
| Patna | 15 | 19 |
| Bhopal | 16 | 18 |
| Chandigarh | 19 | 19 |
| Ludhiana | 14 | 17 |
| Ranchi | 15 | 17 |
| Lucknow | 14 | 18 |
| Kochi | 11 | 12 |
Allocation of Monthly Budgets
The study indicates that food and lodging account for 50 percent of the monthly budget for lower middle-class families. Education expenses, which have seen a rise, now constitute 15 percent of the wallet share. This distribution underscores the substantial financial commitment towards basic necessities and the growing importance of educational expenses in household budgets.
Analysis and Perspectives
Hyderabad’s consistent ranking at the top for both income and expenses reflects its dynamic economy and the rising cost of living. This trend points to a broader economic environment where growth and expenses are tightly linked. The significant increase in both income and expenses highlights the economic pressures and opportunities present in rapidly developing urban centers.
Also Read: Top 10 Fastest Growing Cities in India
The data from “The Great Indian Wallet” study serves as a crucial indicator for policymakers and economic planners. It underscores the need for balanced economic development that not only boosts income levels but also manages living costs effectively to ensure sustainable growth and improved quality of life for lower middle-class residents.
Hyderabad’s position as a leading city in terms of lower middle-class income and fixed expenses demonstrates its robust economic health. However, the rising costs also call for strategic planning to ensure that the benefits of economic growth are equitably distributed and sustainable. As other cities like Pune and Bangalore follow closely, the focus on balanced development remains imperative for fostering inclusive growth across urban India.
