B.G. Prasad Socioeconomic Scale 2024: An Update Using Conventional Approach and Linear Regression Modelling

Dear Editor, An individual’s well-being is profoundly linked to their socioeconomic status, which significantly influences their physical health, quality of life, approaches to health maintenance, healthcare access, social engagements, and their integration into socio-political and cultural contexts. The pivotal role of socioeconomic standing extends to determining dietary practices, health outcomes, longevity, and vulnerability to diseases. Furthermore, it has a direct bearing on access to healthcare services, encompassing factors such as the availability, acceptability, affordability, and effective use of healthcare resources. This multifaceted impact underscores the critical importance of socioeconomic factors in shaping an individual’s overall health and well-being.[1] In the domains of social science and humanities, socioeconomic status (SES) occupies a central role in dissecting the complex interplay between SES and related phenomena. This exploration delves into how crucial elements like personal or family income, level of education, living standards, and other pertinent factors are intricately woven together to define what constitutes a sustainable lifestyle. Through understanding these connections, SES emerges not merely as a measure of financial capability but as a comprehensive indicator that reflects and influences various aspects of life, from individual opportunities to broader societal outcomes.[2] The endeavor to devise a standardized measurement of socioeconomic status (SES) that can be uniformly applied across varied geographical contexts, including semi-urban, urban, and rural areas, has attracted the attention of numerous scholars and experts. Among the most widely recognized SES scales are those developed by Bharadwaj (2001), Jalota (1970), Kulshrestha (1972), Kuppuswamy (1976), Rahudkar (1960), and the Bohm Gram Prasad scale (1961). The BG Prasad scale distinguishes itself due to its simplicity and the efficacy with which it assesses SES, concentrating exclusively on the monthly income per individual. Originating in 1961 with a Consumer Price Index (CPI) base of 100 for the year 1960, the BG Prasad scale has been subject to regular updates to reflect changing consumption patterns. These revisions include the application of linking factors—4.93 in 1982, 4.63 in 2001, and 2.88 in 2016—to ensure its ongoing relevance and accuracy in evaluating socioeconomic conditions.[3,4] The BG Prasad Socioeconomic Scale is dynamically updated monthly, drawing its data from the Consumer Price Index for Industrial Workers (CPI-IW), as published by the Labour Bureau under the Ministry of Labour and Employment, Government of India. Its foremost benefit is attributed to its simplicity and ease of use. Unlike other socioeconomic status (SES) metrics, which may require a broad range of variables or intricate calculations, the BG Prasad SES focuses exclusively on an individual’s monthly income. For January 2024, we have updated the BG Prasad Scale in line with the reported CPI-IW value of 138.9 by the Ministry of Labour and Employment. Further enriching our analysis, a predictive model was constructed employing a linear regression equation: Y = (−14310.852) + (7.139 × Year) + (0.716 × Month). In this model, “Y” represents the predicted CPI-IW value, with β0 (the intercept) being − 14310.852, β1 (the coefficient for “Year”) at 7.139, and β2 (the coefficient for “Month”) at 0.716. This model was instrumental in forecasting the CPI-IW values from February to December 2024. Remarkably, the variables of “year” and “month” within the multivariable regression model accounted for 98.7% (r2 = 0.987) of the variation in the CPI-IW, demonstrating a high level of predictive accuracy. The model leveraged CPI-IW data spanning from December 2020 to January 2024, sourced directly from the Labour Bureau’s website, Government of India, highlighting its robustness and the thoroughness of our methodological approach.[5] Multiplication factor = current index value/Base index value in 2016 (100) = 1.3864 The formula for calculating the new income value is: New income value = Multiplication Factor × Old Income Value × linking factor between the 1960 and 1982 series (4.93) × linking factor between the 1982 and 2001 series (4.63) × linking factor between the 2001 and 2016 series (2.88). Table 1 presents the projected range of new income values for the updated BG Prasad socioeconomic classification for 2024.Table 1: Updated B. G. Prasad socioeconomic scale for 2024Given that updates to the CPI-IW are posted on the official website with a delay of approximately two months, our regression-based prediction model serves to offer forecasts rather than real-time figures. It is critical to acknowledge that the actual CPI-IW values for February to December 2024 might diverge from our predictions due to a variety of unpredictable factors. These include shifts in governmental policy, unforeseen market dynamics, or other external variables that influence the CPI. Consequently, while our model furnishes a dependable estimation, it is important to recognize that real-time economic shifts and unexpected factors could result in discrepancies between our forecasted figures and the actual CPI-IW values for the stated timeframe.[5] Financial support and sponsorship Nil. Conflicts of interest There are no conflicts of interest.