One study found that Bengaluru leads in terms of income, while Chandigarh remains unmatched in terms of spending. So, where does Delhi rank, and which city has the most money?

Highest Income in India: Which city has how much money?

People living in different cities in India have different income, spending, savings, and borrowing habits. Some cities are at the forefront of earning, while others are prone to spending lavishly. Yet, in others, people are burdened with debt.

Tata's The Many Urban Indias conducted a study based on 100 cities, attempting to understand the income, spending, savings, and even borrowing of urban households across the country. The report compared the country's six major metro cities: Bengaluru, Delhi, Mumbai, Chennai, Hyderabad, and Kolkata.

Who leads in earnings?
Among major cities, Bengaluru leads the way in terms of earnings. The annual family income here is 1.7 times higher than Kolkata. According to the report, Chandigarh ranks just behind Bengaluru, while Vadodara is close to Delhi. This means that the highest-earning cities in the country are no longer just Mumbai, Delhi, or Bengaluru.

Where are the wealthiest families located?
If we consider the number of wealthy families, not just average income, the report categorizes families earning over ₹3.6 million annually as high-income.

Mumbai and Delhi-NCR have the highest number of high-income households. Interestingly, Bengaluru, which leads in average salaries, has a lower share of high-income households than these larger cities.

Who spends the most?
High income doesn't necessarily mean high expenses. Chandigarh leads the way in terms of spending. Per-family spending is also high in cities like Vadodara and Surat. Taking a look at 100 cities across the country, families spend an average of about 75% of their income.

In the country's six major metro cities, this share is approximately 58 percent. Among major cities, families in Bengaluru spend the most in terms of total expenditure, followed by Delhi-NCR. The average annual expenditure per family in Delhi-NCR is approximately ₹1.45 million.

What's the situation in Delhi-NCR?
Now let's turn to Delhi. While Delhi-NCR may not be number one in average spending, it is the largest consumption market in the country. The biggest reason for this is the large number of families living here. There are approximately 7.5 million families in Delhi-NCR, and the average annual expenditure per family is around ₹1.5 million.

If we look at these two together, the total consumption market of Delhi-NCR is so big that it is almost equal to the market formed by combining Mumbai and Bengaluru.

Who wins in savings?
Along with income, Bengaluru also wins in savings. Among the six major cities in India, Bengaluru's families save the most. According to the report, families in these six major cities save approximately 42 percent of their income, while the average for 100 cities is approximately 25 percent.

Mumbai and Delhi-NCR together account for nearly a fifth of urban India's total household savings. This gives an idea of ​​the significant contribution these two cities make to the country's economy. The report also revealed that approximately 46.2 percent of households set aside money for old age or retirement.

Who's leading in borrowing?
Now, let's talk about debt. Chennai leads the pack. The household debt-to-income ratio in Chennai is 27.7 percent. According to the report, loans taken to purchase homes and vehicles are the biggest source of borrowing in Chennai. Chennai also has the highest total borrowing among all cities.

Who borrows the least?
Hyderabad presents a stark contrast to Chennai in terms of borrowing. The ratio between monthly salary and monthly debt is around 15%, and total borrowing is also the lowest among the six major cities. The average borrowing per household in Hyderabad is estimated to be around ₹3 lakh.