Lockdown effect: Over one-third of Indian households likely to run out of resources by next week suggests CMIE survey

It also highlighted dire need to support households at the lower end of the income spectrum.

Coronavirus-Outbreak India-Lockdown Lockdown-Effect
Centre for Monitoring Indian Economy conducted a household survey and analysed that more than one-third of Indian households may run out of resources by the next week and face distress without assistance for sustenance after that.

In the study, impact of coronavirus induced lockdown on Indian household income was analyzed and it was released on May 12. CMIE in its report revealed that nearly 84 per cent of households have witnessed a decline in monthly income, and that more than one-fourth of  the country's working age population is unemployed.

The study co-authored by CMIE chief economist Kaushik Krishnan said, "Across India, 34 per cent of all households report being able to survive for no more than one week without additional assistance."

It also highlighted dire need to support households at the lower end of the income spectrum. 

"These figures suggest that the rapid distribution of in-kind cash or cash transfers is needed to prevent a sharp increase in malnutrition and severe deprivation," the study said.

The study has also found that there is a broad decline in household income in tune to a sharp spike in the rate of unemployment to 25.5 per cent as on May 5 from 7.4 per cent on March 21, as per the CMIE's quarterly Consumer Pyramids Household Survey (CPHS).

The study also laid stress on urban-rural divide, with 65 per cent of urban households reporting enough provision for a week while only 54 per cent of rural households said they have enough provisions. 


Some states were more affected than others. While Delhi, Punjab and Karnataka were least affected, states like Bihar, Haryana and Jharkhand were among the worst affected, the study said.

It is reportedly indicated that factors like per capita income before the lockdown, the effectiveness of aid, delivery and lockdown severity rather than the extent of outbreak affects the declining income.

The study was authored by CMIE’s Krishnan, Marianne Bertrand, professor at the University of Chicago Booth School of Business, and Heather Schofield, assistant professor at the Wharton School of the University of Pennsylvania.


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