The advent of air conditioners (ACs) has provided us with the luxury of peaceful sleep even during the sweltering heat. Access to ACs can significantly impact one’s ability to cope with the summer season in various parts of the country. However, determining the exact number of households with ACs has been a challenge. The traditional sources of data, such as the 2011 decadal census, did not collect information about AC ownership, focusing on other assets like radios, televisions, vehicles, and technology.
Fortunately, the National Family and Health Survey (NFHS) does ask households about AC ownership. Although there is a drawback as families with air coolers are also considered to have ACs. Therefore, the Multiple Indicators Survey (MIS) remains the sole official source to determine the number of households with ACs in the country. It is important to note that the MIS, conducted for the first time in 2020-21, published its results in March.
Top 5% of Indians possess 53% of the total ACs
MIS not only reveals whether a household has an AC, but it also provides information regarding the number of ACs in each house. This data highlights the significant wealth disparity among Indian households. Although the figures from the MIS are approximate, they demonstrate that the top 5% richest Indians own 53% of the country’s ACs, while the top 10% possess 72% of the ACs in households, as reported by the Hindustan Times.
Air Conditioner availability
The ownership of ACs is largely concentrated among affluent families in urban areas. Interestingly, only 1.2% of rural households have at least one AC, compared to 12.6% of urban households. However, even in urban areas, ACs are not universally accessible. For instance, slum dwellings, which lack proper roofing, tend to experience high temperatures during summer. A study conducted by the World Resources Institute (WRI) in Mumbai revealed that slum houses are five to six degrees Celsius hotter than flats in neighboring housing societies.
Surprisingly, according to the MIS, slums have approximately half as many ACs as other areas in the city. This suggests that people residing in disorganized areas like slums are not solely driven by economic factors. In fact, about one-tenth of India’s wealthiest 10% live in these densely populated areas. Consequently, even slums have four to six times more ACs than rural areas.
Increase in the number of ACs in homes
The MIS data also reveals the duration of AC ownership in households. It indicates that 50% of residential ACs were purchased within the past three years, and 80% of the total ACs were bought within the past five years. Remarkably, only 2% of ACs in Indian homes are older than a decade.
Most families prefer to rent ACs
The MIS also includes a question about the average expenditure on durable goods, such as ACs, in the last year. Among families who installed ACs a year ago, 80% reported spending less than Rs 25,000 on durable goods, indicating that they did not buy ACs. This can be attributed to the fact that the average cost of ACs exceeds Rs 25,000, and it is uncommon for families to purchase only ACs as durable goods within a year. Therefore, if a family spends only Rs 25,000 on durable goods in a year, it implies that they have rented an AC.
Half of these families mentioned spending Rs 5,000 or less on durable goods in a year, while 20% claimed not spending anything on durable goods. These figures may not be entirely reliable, but they do underscore the significance of the MIS in providing data on AC ownership in households across the country.
Also read | Tips to reduce your electricity bill while using an air conditioner
Also read | Simple tips to choose the correct size of air conditioner for your living room or workspaces
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Omprakash Tiwary is a business writer who delves into the intricacies of the corporate world. With a focus on finance and economic landscape. He offers readers valuable insights into market trends, entrepreneurship, and economic developments.
