In India, the share of the population that earned at least the equivalent of the highest 40 percent of global income earners as of 2022 in purchasing power parity (PPP) terms was 41 percent. Hyderabad topped the list with the highest share of middle-class and above category of consumers. Cities from south India topped the list with the first four ranks, followed by the national capital, Delhi.

In the financial year 2021, a majority of Indian households fell under the aspirers category, earning between 125,000 and 500,000 Indian rupees a year. On the other hand, about three percent of households that same year, accounted for the rich, earning over 3 million rupees annually. The middle class more than doubled that year compared to 14 percent in financial year 2005.

Middle-class income group and the COVID-19 pandemic

During the COVID-19 pandemic specifically during the lockdown in March 2020, loss of incomes hit the entire household income spectrum. However, research showed the severest affected groups were the upper middle- and middle-class income brackets. In addition, unemployment rates were rampant nationwide that further lead to a dismally low GDP. Despite job recoveries over the last few months, improvement in incomes were insignificant.

Economic inequality

While India maybe one of the fastest growing economies in the world, it is also one of the most vulnerable and severely afflicted economies in terms of economic inequality. The vast discrepancy between the rich and poor has been prominent since the last three decades. The rich continue to grow richer at a faster pace while the impoverished struggle more than ever before to earn a minimum wage. The widening gaps in the economic structure affect women and children the most. This is a call for reinforcement in in the country’s social structure that emphasizes access to quality education and universal healthcare services.

The share of middle class' consumption of gold and jewelry across the country was estimated to be around 17 percent in 2030, up from around nine percent in 2020. As the middle class population increases, the income of the population increases which leads to increase in the consumption of gold, mainly because Indians consider gold as an important investment.

In the financial year 2021, the number of super-rich households earning more than 20 million Indian rupees went up to 1.81 million from 1.06 million in the financial year 2016. This was an annual growth of 11.3 percent. The number is expected to grow to over nine million in the financial year 2031 and 32 million households in the financial year 2047. This will be the fastest growth across all income categories. On the other hand, destitute classified Indian households with earnings of less than 125 thousand annually decreased only marginally to 45.17 million in financial year 2021 from 46.5 million in 2016. However, it is estimated that the number of destitute households will fall to just 7.2 million by the financial year 2047.

Between the financial year 2016 and 2021, the number of super-rich households in India earning more than 20 million Indian rupees recorded an annual growth of 11.3 percent. The growth is expected to continue in the next decade at 17.5 percent. This will be the fastest growth across all income categories. The share of destitute households is expected to decline by almost 8 percent between financial 2021 and 2031.

By 2030, the middle-class population in Asia-Pacific is expected to increase from 1.38 billion people in 2015 to 3.49 billion people. In comparison, the middle-class population of sub-Saharan Africa is expected to increase from 114 million in 2015 to 212 million in 2030.

Worldwide wealth

While the middle-class has been on the rise, there is still a huge disparity in global wealth and income. The United States had the highest number of individuals belonging to the top one percent of wealth holders, and the value of global wealth is only expected to increase over the coming years. Around 57 percent of the world’s population had assets valued at less than 10,000 U.S. dollars; while less than one percent had assets of more than million U.S. dollars. Asia had the highest percentage of investable assets in the world in 2018, whereas Oceania had the highest percent of non-investable assets.

The middle-class

The middle class is the group of people whose income falls in the middle of the scale. China accounted for over half of the global population for middle-class wealth in 2017. In the United States, the debate about the middle class “disappearing” has been a popular topic due to the increase in wealth to the top billionaires in the nation. Due to this, there have been arguments to increase taxes on the rich to help support the middle-class.

In 2022, the majority of Indian adults had a wealth of 10,000 U.S. dollars or less. On the other hand, about 0.1 percent were worth more than one million dollars that year. India The Republic of India is one of the world’s largest and most economically powerful states. India gained independence from Great Britain on August 15, 1947, after having been under their power for 200 years. With a population of about 1.4 billion people, it was the second most populous country in the world. Of that 1.4 billion, about 28.5 million lived in New Delhi, the capital. Wealth inequality India suffers from extreme income inequality. It is estimated that the top 10 percent of the population holds 77 percent of the national wealth. Billionaire fortune has increase sporadically in the last years whereas minimum wages have remain stunted.

Over a billion Indians were classified under low income in 2019, from only 873 million in 2011. The change meant that between 2011 and 2019, about 262 million Indians saw an increase in their standard of living, from poor to low income.

According to data published by the Pew Research Center, India is estimated to have had a shrinking middle class as a result of the global recession brought on by the COVID-19 pandemic. It is estimated that the number of people in the middle income tier in India decreased from 99 million to 66 million following the COVID-19 global recession.

In the financial year 2021, the average annual expenditure of rich households in India was over 2 million Indian rupees, a stark contrast to destitute category which spent 83 thousand Indian rupees. A rich household spent almost 25 times that of a destiture household, eight times that of an aspirer household, and almost three times that of a middle-class household.

Based on the results of a survey about WhatsApp users across India in 2018, about 14 percent of respondents who belonged to the poor economic class were active users of the messaging app. While this was about 45 percent for upper middle class and rich respondents during the survey period.

In the financial year 2021, the average annual saving of rich households in India was over 606 thousand Indian rupees, a stark contrast to destitute category which saved only five thousand Indian rupees. The middle-class saved almost 130 thousand Indian rupees annually. During the year, a rich household spent almost 25 times that of a destitute household, eight times that of an aspirer household, and almost three times that of a middle-class household.

This statistic displays the distribution of annual household income across the city of Delhi in India in 2015. During the measured time period, 14 percent of households from the National Capital Region had an annual income between 500,001 rupees and one million Indian rupees.

According to data published by the Pew Research Center, India is estimated to have had a shrinking middle class as a result of the global recession brought on by the COVID-19 pandemic. It is estimated that the number of people in India living on less than $2 per day grew by 75 million people in 2020.

Between the financial year 2016 and 2021, the high income class rural households grew faster than urban super rich households. There was a growth of over 14 percent in rural super rich households. On the other hand, destitute classified urban households grew by 7.3 percent.

As of 2019, about 29 percent of households across India were segmented as belonging to the NCCS C category of consumers. Contrariwise only nine percent of the country's population fell under the NCCS E category that year. Between 2014 and 2019, the share of population classified as category A, B, and C consumers has grown tremendously, reflecting the trajectory of the booming middle class within the Indian economy.

Based on figures by the National Sample Survey Organization (NSSO) from the financial year 2012, it was estimated that the bottom 50 percent of the Indian population spends 3.04 percent of their incomes on taxes for selected food items. The middle 40 percent spends almost half of that and the top 10 percent spends merely 0.16% of their income on food items.

Consumer spending across India amounted to 24.57 trillion rupees by the end of the second quarter of 2024. It reached an all-time high during the fourth quarter of 2023. What is consumer spending? Consumer spending refers to the total money spent on final goods and services by individuals and households in an economy. It is an important metric that directly impacts the GDP of a country. Items that qualify as consumer spending include durable and nondurable goods and services. Various factors such as debt held by consumers, wages, supply and demand, taxes, and government-based economic stimulus can impact consumer spending in a country. Positive consumer outlook in India India’s consumer spending reflects a positive outlook with renewed consumer confidence post-COVID. Its consumer market is set to become one of the largest in the world as the number of middle- to high-income households rises with increasing amounts of disposable incomes. The country’s young demographic is also considered a driving force for increased consumer spending. Consumer electronics such as smartphones, laptops, and gaming consoles were the preferred items among Indian holiday shoppers in 2023.

This statistic depicts the age distribution of India from 2013 to 2023. In 2023, about 25.06 percent of the Indian population fell into the 0-14 year category, 68.02 percent into the 15-64 age group and 6.92 percent were over 65 years of age. Age distribution in India India is one of the largest countries in the world and its population is constantly increasing. India’s society is categorized into a hierarchically organized caste system, encompassing certain rights and values for each caste. Indians are born into a caste, and those belonging to a lower echelon often face discrimination and hardship. The median age (which means that one half of the population is younger and the other one is older) of India’s population has been increasing constantly after a slump in the 1970s, and is expected to increase further over the next few years. However, in international comparison, it is fairly low; in other countries the average inhabitant is about 20 years older. But India seems to be on the rise, not only is it a member of the BRIC states – an association of emerging economies, the other members being Brazil, Russia and China –, life expectancy of Indians has also increased significantly over the past decade, which is an indicator of access to better health care and nutrition. Gender equality is still non-existant in India, even though most Indians believe that the quality of life is about equal for men and women in their country. India is patriarchal and women still often face forced marriages, domestic violence, dowry killings or rape. As of late, India has come to be considered one of the least safe places for women worldwide. Additionally, infanticide and selective abortion of female fetuses attribute to the inequality of women in India. It is believed that this has led to the fact that the vast majority of Indian children aged 0 to 6 years are male.

The statistic shows the gross domestic product (GDP) per capita in India from 1987 to 2029. In 2020, the estimated gross domestic product per capita in India amounted to about 1,915.55 U.S. dollars. See figures on India's economic growth here. For comparison, per capita GDP in China had reached about 6,995.25 U.S. dollars in 2013.

India's economic progress

India’s progress as a country over the past decade can be attributed to a global dependency on cheaper production of goods and services from developed countries around the world. India’s economy is built upon its agriculture, manufacturing and services sector, which, along with its drastic rise in population and demand for employment, led to a significant increase of the nation’s GDP per capita. Despite experiencing rather momentous economic gains since the mid 2000s, the Indian economy stagnated around 2012, with a decrease in general growth as well as the value of its currency. Residents and consumers in India have recently shown pessimism regarding the future of the Indian economy as well as their own financial situation, and with the recent economic standstill, consumer confidence in the country could potentially lower in the near future.

Typical Indian exports consist of agricultural products, jewelry, chemicals and ores. Imports consist primarily of crude oil, gold and precious stones, used primarily in the manufacturing of jewelry. As a result, India has seen a rather highly increased demand of several gems in order to boost their jewelry industry and in general their exports. Although India does not export an extensive amount of goods, especially when considering the stature of the country, India has remained as one of the world’s largest exporters.