SOCIO ECONOMIC CLASSIFICATION (SEC) – NRS 2005

• The Market Research Society of India categorises socio-economic groups based on both occupation and education of the chief wage earner of the household.
• These eight classes are A1, A2, B1, B2, C, D, E1, and E2. A1 is the uppermost socio-economic class and E2, the lowest.

HOUSEHOLD DISTRIBUTION BY EDUCATION ALL INDIA-RURAL & URBAN

• 72 % of those who have not finished school live in rural areas.
• 61% of those who are graduates/post graduates live in urban areas.

URBAN – RURAL DIVIDE HOUSEHOLDS BY INCOME

• 78% of those in the highest income bracket live in urban areas
• 67% of the poorest live in rural areas.

Similarly, the SEC Classification of Rural India is R1, R2, R3, and R4. This again is primarily based on the chief wage earner’s occupation and the type of house like Pucca, Semi-Pucca, and Kutcha house.

As people don’t disclose their exact incomes due to various reasons, this classification is doubted by some experts. So, Market Research Users Council has devised another system called New Consumer Classification System which is based on Household Potential Index (HPI) which takes into consideration many parameters like durables owned in the house etc… Also, there are other measures like Living Standard Measure (LSM) which Unilever believes and uses for its internal use.