India's 'Affluent' class to reach 100 million in three years, will boost premium goods sales

livemint.com:

economic growth, a stable monetary policy, and high credit growth over the past decade have boosted the purchasing power of high-earning Indians. It adds that 60 million people or 4.1 percent of the population now earn over $10,000 per annum, compared to 24 million in 2015. To be sure, however, this is a small percentage of the overall population.

Goldman Sachs has classified the top 4 percent of the working-age population in India with per capita income exceeding $10,000 annually as 'Affluent India'. They contrast with India's average per capita income of approximately $2,100. The 'Affluent India' group, amounting to about 44 million in the working-age category, is projected to reach around 60 million when considering the total population of 1.42 billion.

This growing demographic, consisting of approximately 60 million consumers and 12-14 million households, is indicative of the widespread adoption of discretionary products and services in India. Notable statistics include around 40 million air travelers annually, approximately 30 million monthly users engaging with online food aggregators, 30 million broadband connections, and roughly 26 million international travelers departing from India each year, the report highlighted. The increase in wealth, the report notes comes from various factors.

India's market capitalisation has surged by more than 80 percent in the last three years, driven by increased retail participation. From 2020 to 2023, the price of gold also witnessed a substantial 65 percent rise. Consequently, the combined value of Indian holdings in equities and gold has grown from $1.8 trillion to $2.7 trillion.