Regional Consumer Report - Eastern Region of India

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Simplifying the Indian Consumer Market

Regional Consumer Report—East India
IBMI
September 2007
1

Table of Contents
Executive Summary ...............................................................................3
Introduction............................................................................................5
Demographic Profile of East India..........................................................7
Spending pattern of East India.............................................................13
Socio-economic Categorization of Eastern States................................18
Data Sources........................................................................................19
Table of Figures
Figure 1: Overall Population of Eastern Region and Rest of India, 2007 &
2025.......................................................................................................7
Figure 2: State-wise Population of East India, 2007 & 2025 ..................8
Figure 3: Area-wise Population of East India, 2007 & 2025....................8
Figure 4: State and Area-wise Population of East India..........................9
Figure 5: Gender-wise Population of East India, 2007 & 2025..............10
Figure 6: State and Gender-wise Population of East India....................10
Figure 7: Gender-wise Literate Population of East India.......................11
Figure 8: State-wise Literate Population of East India..........................12

Figure 9: Gender-wise Worker Population of East India........................12
Figure 10: State-wise Worker Population of East India..........................13
Figure 11: Total Annual Spending in East Indian States (2004-05, USD)
.............................................................................................................14
Figure 12: State-wise Annual Per Capita Expenditure in Rural East India
.............................................................................................................14
Figure 13: State-wise Annual Per Capita Expenditure in Urban East India
.............................................................................................................15
Figure 14: Population Distribution of East India by Per Capita Annual
Spending..............................................................................................16
Figure 15: State-wise Population Distribution of Rural East India by Per
Capita Annual Spending.......................................................................17
Figure 16: State-wise Population Distribution of Urban East India by Per
Capita Annual Spending.......................................................................17
2

Executive Summary
• The Eastern region of India has a current population of 312
million and represents 28 percent of the total Indian
population.
• The expected growth rate of population for East India over
2007 to 2025 is lower than the expected Indian population
growth 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 lower
than 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 average
of 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 39,433
million, with USD 28,435 million having been spent in rural
East India and USD 10,997 million having been spent in urban
East 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, on
an 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.
3
• 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-economically
better 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 state
among all the Eastern States.
4
Introduction
The Eastern region of India comprises many small states, including
Arunachal Pradesh, Assam, Nagaland, Manipur, Mizoram, Tripura,
Sikkim, Meghalaya, and the larger states of Bihar, Jharkhand, West
Bengal, Chhattisgarh and Orissa. One of the four largest metros of
India—Kolkata—is the capital of West Bengal. The Eastern region of
India is known for its rich and diverse culture, handicrafts, martial arts
and its pristine scenic beauty. The state of Bihar is one of the most
socio-economically backward states of India.
5
6
Demographic Profile of East India

Overall population of East India
The Eastern region of India has a current population of 312 million and
with a growth rate of around 20 percent over the next 18 years, it is
expected to reach a size of 374 million by 2025. Currently, East India
accounts for 28 percent of the total Indian population. The expected
growth rate of population for East India over 2007 to 2025 is lower
than the expected Indian population growth rate of 23 percent over the
same period.
Figure 1: Overall Population of Eastern Region and Rest of India, 2007 &
2025
Population of Eastern Region of India

1600
Thousands
1400
1200
1000 Rest of India
73%
800
72% East India
600
400
200 28% 27%
0
2007 2025
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 most
populated state in East India. West Bengal is next, with a population of
about 86 million. The other Eastern states are much smaller than these
two states.
7
Figure 2: State-wise Population of East India, 2007 & 2025
Population of Eastern States of India

West Bengal 100
86
Tripura 4
3
Sikkim 0.70
0.58
Orrisa 45
39
Nagaland 3
2 2025
Mizoram 1.16
0.96 2007
Meghalaya 3.01
2.50
Manipur 3
2
Jharkhand 37
30
Chhattisgarh 28
23
Bihar 113
92
Assam 35
29
Arunachal Pradesh 1.43
1.18 Millions
Source: Office of the Registrar General & Census Commissioner of India, Population
Projections
Rural and urban population of East India
The rate of urbanization in the Eastern region of India is much lower
than that of India. Currently, only about 19 percent of East India is
urbanized. Even by 2025, 79 percent of the Eastern region would be
rural. 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
Urban-Rural population of East India
297
253
Millions
300
200
78 Rural
100 59
Urban
0
2007 2025
Projections
8
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 the
highest 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

100%
863
24,956
82,530
17,923
22,943
1,728
1,995
462
1,775
32,978
510
2,822
61,773
Rural
80%
Urban
Thousands
60%
40%
20%
West Bengal 24,352

Assam 4,097
Bihar 9,678
Chhattisgarh 5,011
Jharkhand 6,802
Orrisa 6,298
505
Arunachal 321
Manipur 608
Mizoram 496
Nagaland 370
Tripura 627
Sikkim 73
0%
Meghalaya
Projections
Gender-wise population of East India
About 51.4 percent of the population of East India is male. While there
are 161 million males, about 152 million are females. The ratio of
males to females is expected to remain the same even by the year
2025 by when there would be about 191 million males and 184 million
females.
9
Figure 5: Gender-wise Population of East India, 2007 & 2025
Gender-wisepopulation of East India

191
161
Millions
184
200
152
150
100
Males
50
Females
0
2007 2025
Projections
Almost all the states of East India have a similar male to female ratio.
Chhattisgarh and Manipur are the most equitable with a male to
female ratio of 1. In Sikkim, Nagaland and Arunachal Pradesh about 53
percent of the population is male.
Figure 6: State and Gender-wise Population of East India
Gender-wisepopulation of Eastern States, 2007
100%
560
464
19,393
273
14,099
44,312
11,419
14,429
1,157
1,234
1,019
1,682
41,731
80% Females
Males
Thousands
60%
40%
Orrisa 19,883
Assam 14,954
Bihar 47,896
11,514
15,316
44,394
20%
1,179
Meghalaya 1,266
Nagaland 1,127
Tripura 1,767
624
Mizoram 494
Sikkim 310
0%
Chhattisgarh
Arunachal
West Bengal
Manipur
Jharkhand
Pradesh
Projections
10
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 of
70.4 while female literacy rate is about 48.3. While male literacy is
lower than the national average, female literacy in the East is much
higher than the national average of 43.9.
Figure 7: Gender-wise Literate Population of East India
Literatepopulation of East India, 2001
123
Million 115
140
120
87
100
80 56
60 Population
40 (> 6 years)
20 Literates
-
Males Females
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 highest
literacy rate of 88.8, while Bihar has the lowest of about 47.0. West
Bengal has higher number of literates than Bihar, even though it is
smaller in terms of overall population size.
11
Figure 8: State-wise Literate Population of East India
Literatepopulation of Eastern States, 2001

100%
693
83
568
144
741
407
8,142
35,083
2,563
11,609
21,566
10,212
548
80%
Illiterates
Thousands
60% (> 6
years)
40%
Literates
20%
Assam 14,015
Bihar 31,110
Chhattisgarh 11,173
Orissa 19,837
West Bengal 47,196

Jharkhand 11,777
Manipur 1,311
Meghalaya 1,158
Nagaland 1,132
Tripura 2,022
Mizoram 661
Sikkim 318
485
0%
Arunachal
Pradesh

Worker population of East India
Workers account for 37.1 percent of the population of East India. This is
lower than the national average of 39.1 percent. About 50.7 percent of
the males in the East are workers. However, only about 22.6 percent of
the females in East India work.
Figure 9: Gender-wise Worker Population of East India
Worker population of East India, 2001
148 139
Millions
160
120
75
80
31 Total population
40
Worker population
0
Males Females
Mizoram, the state with the highest literacy rate, is also the one with
the highest share of worker population among the other Eastern states.
12
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

100%
1,349
1,142
2,040
615
11,154
16,837
1,222
421
278
17,117
55,024
22,528
50,695
80%
Thousands
Non
60%
workers
40% Workers
20%
Jharkhand 10,109
Bihar 27,975
Orissa 14,276
West Bengal 29,482

Assam 9,539
Chhattisgarh 9,680
Tripura 1,160
Meghalaya 970
Nagaland 848
Arunachal 483
Manipur 945
Mizoram 467
Sikkim 263
0%

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 USD
10,997 million having been spent in urban East India. Rural West
Bengal spent the highest, followed by rural Bihar and urban West
Bengal.
13
Figure 11: Total Annual Spending in East Indian States (2004-05, USD)
Total Annual Spending in East Indian States,

2004-05
8,805
10000
7,315
Million US Dollars
8000
5,707
6000
3,367
3,270
2,272
2,032
4000
1,246
1,012
1,011
856
650
2000
353
311
234
Arunachal 156
152
Tripura 118
Nagaland 94
Manipur 90
Meghalaya 87
88
Mizoram 88
81
Sikkim 17
Pradesh 23
0
Chhattisgarh
Jharkhand
West Bengal
Orissa
Assam
Bihar
Rural Urban
Source: NSSO, 61st Round Survey, Level and Pattern of Consumer Expenditure & IBMI
calculations
Annual Per Capita Expenditure
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 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)
East India 125
West Bengal 148
Tripura 128
Sikkim 181
Orissa 105
Nagaland 266
Mizoram 204
Meghalaya 172
Manipur 161
Jharkhand 112
Chhattisgarh 112
Bihar 110
Assam 143
Arunachal Pradesh 203
US Dollars
calculations
In urban East India as well, per capita expenditure is the highest in
Nagaland. Mizoram is next, followed by Meghalaya. Bihar has the
lowest per capita annual expenditure in both rural and urban East
India.
14
Figure 13: State-wise Annual Per Capita Expenditure in Urban East India
Annual Per Capita Expenditurein

Urban East India (2004-05)
East India 258
West Bengal 295
Tripura 263
Sikkim 291
Orissa 199
Nagaland 394
Mizoram 316
Meghalaya 313
Manipur 191
Jharkhand 259
Chhattisgarh 260
Bihar 183
Assam 278
Arunachal Pradesh 232
US Dollars
calculations
Population Distribution by Per Capita Annual Expenditure

There were only about 5 million people in rural East India that, on an
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.
15
Figure 14: Population Distribution of East India by Per Capita Annual

Spending
Rural population distribution: East

India (Per capita annual spending, 2004-05)
100% 5
22
$304 & more
80%
87 $181 - $304
60%
$108 - $181
40%
0 - $108
20% 114
0%
No. in Millions
Urban population distribution: East

India (Per capita annual spending, 2004-05)
100% 2
6 $668 & more
80%
12 $363 - $668
60%
$208 - $363
40%
0 - $208
23
20%
0%
No. in Millions
calculations
West Bengal has the highest number of persons belonging to the $304
& more expenditure category in rural East India. Rural Orissa and Bihar
are the next highest contributors to the $304 & more expenditure
category, with 0.55 and 0.47 million persons respectively. In rural West
Bengal about 8 million people spent in the range of $181 - $304 per
capita in 2004-05.
16
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
100% 0.39 0.47 0.36 0.18 0.03 0.05 0.55 0.06 3
0.10 4 1.02 1.32 0.04 2 0.05 0.26
4 0.30 0.52 0.14 8 $304 & more
80% 23 5 7 8 0.11
0.25 0.19 $181 - $304
60% 1.31
12 28
1.01
0.31
0.20 $108 - $181
40% 0.32 1.15
39 12 12 0.19
21
0 - $108
20% 1.13 21
6 0.13 0.09
0.10 0.10 0.08 0.02
0%
Chhattisgarh
Orissa
Assam
Jharkhand
Meghalaya
Arunachal
Tripura
West Bengal
Mizoram
Sikkim
Nagaland
Bihar
Manipur
Pradesh
No. in Millions
calculations
In urban East India, West Bengal has the highest number of persons in
the $668 & more expenditure category. West Bengal also leads in
terms of highest numbers in the $363 - $ 668 expenditure category
with 3 million people. West Bengal; however, is also the state with the
highest number of people with expenditure lower than $208 per person
per 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
100% 0.01 0.06 0.14
0.37
0.12 0.17 0.01 0.01 0.01 0.07 0.00 0.02 1.22
0.02 0.36
0.43 0.41 0.49
0.13 0.07 0.01 0.07 3 $668 & more
80% 1 0.08 1.28
0.04 0.77 0.09
1.33 0.13 $363 - $668
60% 0.86 6
0.10 0.13 0.03
$208 - $363
40% 5 0.32
2 0.11 3
0.24 0 - $208
20% 0.05 0.99 2
0.09 0.07
9
0.02
0% 0.02
Chhattisgarh
Orissa
Assam
Jharkhand
Meghalaya
West Bengal
Arunachal
Tripura
Nagaland
Mizoram
Sikkim
Bihar
Manipur
Pradesh
No. in Millions
calculations
17
Socio-economic Categorization of Eastern States

A broad socio-economic categorization of the Eastern states is
presented in Figure 17 and Figure 18. Figure 17 depicts the socio-
economic categorization of rural East Indian states against the average
values of rural India. The horizontal axis represents the average rural
monthly per capita expenditure in dollar terms while the vertical axis
represents the state's literacy rate. The Eastern states of India and the
average for India and the Eastern region are plotted and the red lines
demarcate four quadrants keeping the value of rural India at the
center. States plotted to the right of the vertical red line have higher
MPCE than the average Indian MPCE and states plotted above the
horizontal red line have higher literacy rates than the average of India.
Only a few of the rural Eastern states are socio-economically better off
than an average Indian state (See Figure 17). Mizoram is the most
socio-economically advanced state among all the Eastern States. Most
rural Eastern states are worse off than average rural India. Bihar,
Jharkhand, Assam, Orissa and Chhattisgarh are all worse off than an
average rural Indian state, while Meghalaya and Arunachal Pradesh are
worse off only in terms of literacy. The average rural Eastern state is
socio-economically worse off than the average for India.
Figure 17: Socio-economic Categorization of Rural East Indian States
Socio Economic Categorization of Rural

Eastern States
100
90 Mizoram
States' Literacy Rate
80
Tripura Manipur
70 W. Bengal Sikkim Nagaland
Chhattisgarh India
Orissa Meghalaya
60 East India Assam Arunachal
Jharkhand Pradesh
50
Bihar
40
0.0 5.0 10.0 15.0 20.0 25.0
MPCE (USD)
Source: Census of India 2001; NSSO, 61st Round Survey & IBMI calculations
Figure 18 depicts the urban counterpart of the socio-economic

categorization described in Figure 17. Urban East Indian states are
18
plotted against the average values of urban India. The horizontal axis
represents the average urban MPCE in dollar terms while the vertical
axis represents the state's literacy rate. The red lines demarcate four
quadrants keeping the value of urban India at the center.
In the case of urban East India, Mizoram, Nagaland, Sikkim and West
Bengal are socio-economically better off than an average urban Indian
state, while urban Chhattisgarh, Orissa, Arunachal Pradesh and
Jharkhand are socio-economically worse off. Urban Tripura and Manipur
are worse off than an average urban Indian state in terms of spending
per capita, although they are better off in terms of literacy and urban
Assam and Meghalaya are better off in terms of spending while worse
off in terms of literacy.
Figure 18: Socio-economic Categorization of Rural East Indian States
Socio Economic Categorization of Urban

Eastern States
100
90 Mizoram
States' Literacy Rate
80
Tripura
Manipur W. Bengal
70 Sikkim Nagaland
Chhattisgarh India
Orissa Meghalaya
60 East India Assam
Arunachal P. Jharkhand
50
Bihar
40
0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0
MPCE (USD)
Source: Census of India 2001; NSSO, 61st Round Survey & IBMI calculations
Data Sources
Ministry of Statistics and Programme Implementation. National Sample
Survey 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
19
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 National
Commission on Population. May 2006 (Revised December 2006)
Population Division of the Department of Economic and Social Affairs of

the United Nations Secretariat (2007). World Population Prospects: The
2006 Revision. Highlights. New York: United Nations.
20

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IBMI: Industry Information Navigator

Created by IBMI, visit www.bunseki.info for free data and reports

Simplifying the Indian Consumer Market

Simplifying the Indian Consumer Market

Figure 8: State-wise Literate Population of East India..........................12

Simplifying the Indian Consumer Market

• West Bengal has the highest number of persons belonging to

Demographic Profile of East India

Population of Eastern Region of India

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

State-wise population of East India

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

Population of Eastern States of India

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

Urban-Rural population of East India

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

Urban-Rural population of Eastern States, 2007

West Bengal 24,352

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

Gender-wisepopulation of East India

Gender-wisepopulation of Eastern States, 2007

Literacy rates in East India

Literatepopulation of East India, 2001

Source: Census of India, 2001

Figure 8: State-wise Literate Population of East India

Literatepopulation of Eastern States, 2001

West Bengal 47,196

Source: Census of India, 2001

Figure 9: Gender-wise Worker Population of East India

Worker population of East India, 2001

Source: Census of India, 2001

Almost 53 percent of the people in Mizoram work for their living.

Figure 10: State-wise Worker Population of East India

Worker population of Eastern States, 2001

West Bengal 29,482

Source: Census of India, 2001

Total Annual Spending in East Indian States,

Annual Per Capita Expenditure in

Annual Per Capita Expenditurein

Population Distribution by Per Capita Annual Expenditure

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

Rural population distribution: East

Urban population distribution: East

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

Distribution of rural population of Eastern States based

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

Distribution of urban population of Eastern States based

Socio-economic Categorization of Eastern States

Socio Economic Categorization of Rural

Figure 18 depicts the urban counterpart of the socio-economic

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

Socio Economic Categorization of Urban

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

Office of the Registrar General & Census Commissioner of India.

Population Division of the Department of Economic and Social Affairs of

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