Economic Inequality Among Annadata Households (2024–25):
Annadata households, making up 21% of India's total households, reflect a highly bifurcated economic profile. While 60% belong to middle-income segments like the Aspiring Middle Class and Middle Class, 30% are categorized as Poor or Vulnerable, facing negative surplus incomes, high expenditure burdens, and limited savings. The Rich Farmers, though only 8%, command 28% of the total income, hold minimal debt, and save the most—indicating sharp economic divides within the agricultural sector. Poor and Vulnerable farmers spend more than they earn, signaling deep financial distress and limited access to credit or buffers.

Spending Priorities & Well-Being:
Spending patterns diverge sharply across income groups. Poor farmers spend nearly 55% of their income on food alone, while Rich farmers spend just 41.5% on food, allocating more to education, healthcare, housing, and discretionary items. Education and healthcare expenditures steadily rise with income, reflecting both access and prioritization. Discretionary spending, such as on travel and apparel, becomes more visible among Aspiring and Middle Class farmers, signaling evolving lifestyles and a desire for upward mobility. However, the financial burden remains steep for low-income farmers, who continue to rely on debt or sacrifice basic needs.

Policy Implications:
Bridging these gaps requires targeted policies. Direct income support and debt relief are essential for Poor and Vulnerable farmers. For upwardly mobile segments, affordable credit, micro-loans for housing and durables, and matched savings schemes can accelerate economic stability. Public investment in education, healthcare, and rural infrastructure must be enhanced to ensure equitable access. Financial literacy programs tailored to different income groups will also empower Annadata households to manage their finances better, reduce debt dependency, and build long-term resilience.