India is one of the fastest growing economies in the world. But, what does it mean to be ‘affluent’ in India Earlier in January, Goldman Sachs released a report worth reading ‘The Rise of Affluent India’.
“100 million Indians to be affluent by 2027.” The core idea of the report – India’s affluent class will dictate consumption activity in the economy.
Here the number has been defined as someone who has income over Rs. 8,30,000 per annum (Over 10000$). Right now, in India, this number is upto 60 million people, or 4% of India’s working population.
Here are some highlights:
𝗚𝗿𝗼𝘄𝗶𝗻𝗴 𝘀𝗵𝗶𝗳𝘁 𝗶𝗻 𝗶𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁 𝗯𝗲𝗵𝗮𝘃𝗶𝗼𝘂𝗿: While gold and property have traditionally been important stores of wealth in India, there has been a notable shift towards investing in equities, Retail investors are increasing.
𝗦𝗵𝗶𝗳𝘁 𝗶𝗻 𝗖𝗼𝗻𝘀𝘂𝗺𝗽𝘁𝗶𝗼𝗻 𝗣𝗮𝘁𝘁𝗲𝗿𝗻𝘀: There is a significant shift in consumption patterns towards lifestyle upgrades like leisure activities, hotels, and dining out.
𝗚𝗿𝗼𝘄𝘁𝗵 𝗶𝗻 𝗦𝗽𝗲𝗰𝗶𝗳𝗶𝗰 𝗠𝗮𝗿𝗸𝗲𝘁 𝗦𝗲𝗴𝗺𝗲𝗻𝘁𝘀: FMCG, footwear, fashion, passenger vehicles, and two-wheelers segments are growing, offerings to the preferences of the affluent.
Vani Kola, MD at Kalaari Capital said, “While it is good the affluent segment is growing, India’s top 1% owned more than 40% of its total wealth. The future needs to bring broad-based accessibility and affordability to standards of living to the rest of the population. My hope is technology and innovation will create better wealth equitability by making jobs accessible wherever you live, and entrepreneurship to flourish across smaller towns and cities as it does in metros today.”