A few days ago, I explored how the monthly expenditure patterns of Indians in both rural and urban segments might reflect the potential for Indian telecom operators to sustain tariff hikes. This analysis, based on recent NSSO data, provided a broad view of Indian spending across various product and service categories. Today, I plan to delve deeper into this topic using the same report, along with additional references, to estimate the income levels across various telecom circles. This will cover both rural and urban segments, across different population and income classes.
The aim is to examine claims by telecom operators that despite increases in per capita GDP—a proxy for individual income—over recent years, these have not translated into higher tariffs, suggesting significant room for price adjustments in mobile tariffs due to this increased income. The insights from this analysis will not only be relevant to the mobile industry but could also help gauge potential demand across various other industry segments and products. Let’s dive deep into this analysis to uncover the underlying economic dynamics.