Updated Modified BG Prasad Classification for October 2023

Abstract

Dear Editor,

The Brahm Govind Prasad or BG Prasad classification for eliciting the socio-economic classification of the urban and rural families in India is a commonly used scale as a determinant of an individual’s health. It is easy to calculate, and it can be applied to all sections of society This classification purely depends on rates of year-on-year inflation and the changes in prices of consumer products such as Food & Beverages, Pan, Supari, Tobacco & Intoxicants, Clothing & Footwear, Housing, Fuel & Light and Miscellaneous (1). These outcome of these changes are depicted in the All-India Consumer Price Index for Industrial Workers (CPI-IW) which is released by the Labour Bureau, an attached office of the Ministry of Labour & Employment under the Government of India. The All-India CPI-IW for September 2023 stands at 137.5 (one hundred thirty-seven point five) (2).

There is a scope for periodic revision of the BG Prasad Scale as it was initially introduced in 1961, with the CPI for 1960 serving as the base value of 100. In the subsequent years, few more modifications and emendations had to be made. Linkage factors were introduced to convert the CPI back to the base year of 1960 (100) during the years 1982, 2001 and 2016 which are 4.63, 4.93 and 2.88 respectively (3, 4).

Calculation of Revised Modified B G Prasad classification for September 2023

Correction factor = current index value (137.5) x linkage factor between 1960 and 1982 (4.63) x linkage factor between 1982 and 2001 (4.63) x linkage factor between 2001 and 2016 (2.88) whole divided by base index in 2016 (100) = 90.39

The new income values can now be calculated using the formula, New income values = Correction factor x old income value of 1961. Table 1 shows the updated values of per capita monthly income for September 2023.

Table 1: Modified BG Prasad classification for September 2023 (Rupees/ month)

Social Class

Original BG Prasad classification of 1961

(Rs./ month)

Modified BG Prasad classification for Sep 2023

(Rs./ month)

I

Upper class

100 and above

9039 and above

II

Upper middle class

50 – 99

4971 - 9038

III

Middle class

30 – 49

2712 – 4970

IV

Lower middle class

15 – 29

1356 – 2711

V

Lower class

Below 15

Below 1356