Context:
The HIS 2026, to be conducted by the National Statistics Office (NSO), is aimed at collecting household income data for the first time in nearly two decades. Unlike consumption surveys, which households are generally comfortable reporting, income data collection faces unique difficulties, particularly because a majority of Indians work in the informal sector and do not file taxes. Understanding income is crucial for evaluating living wages, earnings adequacy, and social protection policies (linked to Article 43 of the Constitution).
Key Challenges
- Reluctance to Disclose Income
- Pilot survey feedback shows 95% of respondents were uncomfortable sharing detailed income information.
- Questions on income tax paid, non-labour income, and financial assets often receive refusal or under-reporting.
- Phenomenon of “satisficing”: respondents may give approximate or “good enough” answers rather than accurate figures.
- Respondent Availability & Logistics
- Timing of visits is critical: working members are busy in the morning and at work during the day; evenings may be unsuitable due to fatigue.
- Non-working members could respond, but may lack detailed knowledge of household income and investments.
- Survey Overlap and Comparability Issues
- HIS timing overlaps with the Situation Assessment Survey (SAS) of Agricultural Households, which also collects income data.
- SAS collects highly disaggregated income data, which is generally more accurate than a single high-level question in HIS.
- Analysts need to be cautious in comparing income estimates across surveys.
- Non-Response and Data Gaps
- Likely high non-response rates for non-labour income and investment-related questions.
- Respondents may not know details like interest income in the past quarter.
- Data collection needs to account for approximate answers versus precise figures.
- Focus Beyond Consumption
- Historically, India focused on consumption surveys due to food security and hunger concerns.
- HIS aims to shift the focus to income adequacy, earnings, and quality of life, moving the policy conversation beyond poverty estimates based on consumption alone.
