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Q: A lot of people are clueless about the new socio-economic classification system. From SEC to NCCS and now ISEC. Can you explain the concept and need for change in simple English?
A: There is nothing so stable as change, Bob Dylan once opined. The same is applicable in case of socio- economic classification. Within 10 years of introduction of NCCS, the new ISEC has to be introduced , keeping in mind the changing landscape of Indian households. It is also critical for marketeers for sharper focus of their addressable market.
What is the difference between NCCS and ISEC? I don’t have the full report in my hand. Hence I won’t be able to highlight exhaustively the specific differences. But broadly, NCCS focused on education of the chief wage earner and presence of certain consumer durables and ownership of vehicles. ISEC has taken into account occupation of the chief wage earner and education of highest educated male adult, and highest educated female adult.
This makes ISEC more discriminatory and volatile. With the inclusion of the highest education of the female adult, it is evident that a significant aspect of India’s social capital is recognised.
Finally, I would like to add that such studies should happen at frequent intervals- eg 2/3 years – to reflect the dynamic nature of the socio- economic and household landscape of Indian society.