Per capita income India

In India, one of the most common questions people ask is, “How much is your salary?” With India’s rapid development, the nature of such questions has evolved. About twenty years ago, the standard query after meeting someone was, “What do your parents do?” Today, however, the first question is often about one’s occupation, followed by inquiries about the parents’ professions. While family remains a crucial aspect of Indian society, it is clear that the focus has shifted towards individual careers.

However, discussing salary in India can be quite confusing. Despite having a fixed salary, many people are unsure of their actual earnings due to the prevalent practice of bribery. Here’s how these conversations typically go:

**Person A:** “What is your salary?”

**Person B:** “Ten thousand, but I make about twenty thousand including everything.”

In this context, “everything” often refers to bribes. It’s not uncommon for people to disclose only their official salary, with others then asking if this amount includes additional earnings from bribery. This practice is particularly prevalent among government employees, many of whom are involved in corrupt practices. It’s hard to imagine any government department where work can be done without offering a bribe.

Whether dealing with civil courts, the electricity department, the water board, municipal services, road transport offices, or the police, bribery is a common requirement. For instance, if someone wants a court case to be scheduled at their convenience, a bribe to the clerks can make it happen. If one wishes to reduce their electricity bill, paying a fraction of the bill as a bribe can lower the amount due. Even obtaining a fake driving license can be accomplished by bribing officials, bypassing any testing requirements.

This stark contrast with Western practices is striking. In Western countries, when asked about salary, people are usually asked if the amount is before or after taxes. In India, the focus is on whether the amount is before or after bribes—a significant difference. Many people avoid paying income tax by hiding their earnings, deciding on their own how much tax to pay.

In addition, due to the scarcity of jobs, many people receive their salaries in cash rather than through bank accounts. This system allows employers to bypass official records, leading to widespread underpayment. Even well-known companies like Coca-Cola sometimes fail to pay their temporary employees the standard minimum wage. Improved record-keeping and computerized systems might help address some of these issues, but it’s uncertain whether such measures would be foolproof against new forms of evasion.

Interview with Musahars in the village

During my time working for the Financial Times in Varanasi, I had the opportunity to spend time with the Musahar community, a group still considered untouchable in Indian society. Traditionally, Musahars are known for collecting and making bowls from Pipal leaves, a craft that has become increasingly obsolete as plastic bowls have replaced their traditional products. We visited a Mushahar village near Mehndiganj, Varanasi. The village consisted of simple clay huts, and the interviewee was a 24-year-old married woman whose husband worked as a rickshaw driver.

The family of six included her husband, father-in-law, mother-in-law, and two daughters. Despite their dire economic situation, none of their daughters attended school. Her husband earned only Rs. 25 (50 cents USD) per day, and due to their caste, no one in the local community wanted to ride in his rickshaw. During the harvest season, Mushahars get some temporary work cutting grains on other people’s land. Ironically, while they cut and handle the grains that others eat, they are not allowed to sit on the same rickshaw or access the same resources due to their caste.

Their payment for this labor is often in the form of grains rather than cash. They typically receive around 150 kgs of grains per year, valued at Rs. 2000 ($50), which is not enough to sustain a family. The traditional occupation of making leaf bowls has lost its significance due to the widespread use of plastic, further impacting the Mushahar community’s income. Although this practice persists in smaller towns, cities like Varanasi are slowly abandoning it. During the interview, the interviewer was shocked by the family’s meager income and gave Rs. 500 to the interviewee as a gesture of empathy.

The local guide suggested distributing the money among the villagers. However, this led to a heated argument among the community members. The interviewee insisted on keeping the initial Rs. 500 for herself, while the villagers argued that it should be shared. The situation escalated into a conflict, and we had to leave quickly to avoid further violence. The village had only a hand pump and a well for water, both of which often dried up during the summer. Being near a Coca-Cola plant, they faced significant water scarcity issues. The local people, aware of their caste, would not allow them to use their water resources. As a result, the women of the Mushahar community, who are responsible for fetching water, had to walk 2-3 kilometers daily to get water.

When we arrived, the villagers brought out a Khatia (a rope bed) for us to sit on. However, when they asked about my caste and learned that I am a Brahmin, they refused to sit with me due to the caste differences.

Indian Salary

An American contacted me to help book his train ticket from Varanasi to Agra. He had tried to buy the ticket online but found it too complicated. He suggested meeting for dinner in Varanasi, and we arranged to meet at his hotel near Assi Ghat. His hotel was quite nice. When I arrived, I noticed a 50-year-old man talking to two Western women. He was explaining that he couldn’t find a train ticket and had contacted someone in Varanasi, offering dinner in exchange for help with his booking. I realized he was referring to me and approached him, confirming that he was Christopher.

I think he initially believed I had helped him with the ticket in exchange for a meal at a nice restaurant, which seemed to be his impression. Although he was relieved to have his ticket, he then asked which restaurant I wanted to dine at. I hadn’t considered his offer seriously, as I assumed he just wanted to chat. I generally prefer not to eat out, so I declined his offer. Christopher mentioned that he had informed his hotel that he wouldn’t be eating there, so they wouldn’t prepare his meal. To resolve this, I took him to a restaurant where he had his dinner. During our meal, we discussed the Coca-Cola issue again.

He remained unconvinced that Coke was at fault, believing instead that the problems lay with the people and the Indian government. The next day, Christopher asked if I would be his tour guide. I accepted the offer, and we spent the day exploring various temples and wandering around the city. He was particularly interested in meeting people, so I arranged for him to meet Lali Baba. Although I believe he was satisfied with my services, the payment was surprisingly low. Despite being one of the wealthiest people I had worked with—he lived in an upper East Side Manhattan apartment where the average salary is $320,000 per year—he paid me only $10 for a full day of work.

I didn’t see the money until later, and when I did, it turned out to be just $10. It reminded me of what Lane had said: “You don’t need to be rich to spend and poor to save money.” It was quite a humorous moment.