Strong economic development, stable monetary policy, and rapid credit growth over the past ten years have increased the spending power of high-earning Indians, according to the report titled Rise of 'Affluent India'. The article also notes that, up from 24 million in 2015, 60 million people, or 4.1% of the total, now make above $10,000 annually. It is true that this represents a small portion of the population as a whole. As per Goldman Sachs, 'Affluent India' refers to the top 4 percent of India's working-age population whose annual per capita income is more than $10,000. They stand in contrast to the about $2,100 average per capita income of India. Based on the working-age population of 44 million, the 'Affluent India' group is expected to grow to 60 million when taking into account the 1.42 billion people in the country.
This expanding group, which consists of 12–14 million households and about 60 million people, demonstrates how widely discretionary goods and services are used in India. The report highlighted some noteworthy data, such as the approximately 40 million air travelers that occur each year, the roughly 30 million monthly users that use online food aggregators, the roughly 30 million broadband connections, and the approximately 26 million overseas travelers that leave India annually.
The report points out that a number of variables contribute to the increase in wealth. Due to a rise in retail involvement, India's market capitalization has expanded by more than 80% in the last three years. The price of gold also increased significantly, by 65 percent, between 2020 and 2023. As a result, Indian holdings of gold and stocks have increased in value from $1.8 trillion to $2.7 trillion. Real estate values rose by almost thirty percent between FY19 and FY23, compared to a thirteen percent growth between FY15 and FY19.
The report went on to say that a steady rise in top-end spending is anticipated as the 'Affluent India' segment grows, with the main winners being categories like entertainment, jewelry, dining out, healthcare, and luxury brands in a variety of industries. In terms of equity, the report revealed a high preference for brands and network activities such as Apollo, Devyani, Eicher, MakeMyTrip, Phoenix, Sapphire, Titan, and Zomato. It discovered that businesses serving high-end consumers expand more quickly than those aiming for mass consumption.
