New Delhi: India will celebrate the first century of its independence in 2047, with this joyous event, the middle class in the country is expected to grow from the current 400 to 700 by the year 2046-47.
A report by People Research on India’s Consumer Economy (PRICE) states that by 2030, 700 million of India’s population will be classified as middle class.
The report has been analyzed through data collected by PRICE through its ICE 360-degree pan-India survey, which is based on 40,000 households across 25 Indian states.
In a report released on July 5 – The Rise of India’s Middle Class: A Force to Reckon With, PRICE said, “By the end of this decade, the country’s demographic structure will change from an inverted pyramid to one dominated by a small wealthy class.” and a very large low-income group, up to an underdeveloped diamond, where a significant portion of the low-income group moves on to become part of the middle class.
According to economist Karan Mehrishi, it is no surprise that such a large number of the middle class has been projected due to the increase in consumption driving savings and investment.
The report further states that India’s average household income is expected to be Rs 5-30 lakh by 2031 at current prices.
With India’s GDP expected to grow to $20-25 trillion by 2040-50 from $3.7 trillion currently, there is huge scope for consumption demand, said Mehrishi.
rich and poor
Households earning more than Rs 30 lakh per annum are classified as ‘rich’ and are expected to increase from 56 million in 2020-21 to 437 million by 2046-47.
On the other hand, the number of ‘destitute’ Indian households earning less than Rs 1.25 lakh per annum is said to have declined from 46.5 million in 2015-16 to 45.2 million in 2021-21.
The number of destitute households increased by 7.3 percent each year in urban areas over the five-year period, however, the number declined by only 1.6 percent each year in rural areas.
PRICE estimates that the number of destitute households will drop to 7.2 million by 2046-47.