Indian middle-class population to reach 1.02 bn in 2046-47

India’s middle-class population, a key driver of economic growth with an annual income of ₹5-30 lakhs is expected to reach 1.02 billion in 2046-47.

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According to a study, India’s middle class, a key driver of economic growth, is projected to increase from 31% of the population in 2020-21 to 61% in 2046-47. The middle-class population with an annual income of ₹5-30 lakhs is expected to reach 1.02 billion in 2046-47, up from 715 million in 2030-31 and 432 million in 2020-21. 

The study also suggests a decrease in the destitute (earning less than ₹1.25 lakhs per year) and aspirer groups (₹1.25-5 lakhs) from 928 million in 2020-21 to 647 million by 2030-31 and further to 209 million by 2046-47.

The rich, on the other hand, are predicted to rise from 56 million to 169 million and 437 million. Notably, the number of super-rich households (earning more than ₹2 crores) is expected to double to 1.81 million by 2021 and further increase to 9.1 million by 2030-31 and 32.7 million by 2046-47.

While less than 2% of the destitute population resides in India’s largest cities, these cities house a significant proportion of the country’s super-rich (55%), sheer rich (44%), clear rich (42%), near rich (37%), and middle-class (27%).

The study encompassed over 40,000 households from 25 states, both in rural and urban areas.

According to Rajesh Shukla, Managing Director and CEO of PRICE, “It is necessary to understand why the middle class is important because half of the income, expenditure and saving is within this section. Moreover, 55% of the incremental consumption by 2031 will be by the middle class,”