Report: Majority of Indians Struggle with Disposable Income

This report highlights India’s widening economic inequality and the challenges it poses to consumer spending. Some key takeaways:

  • Limited Consumer Base: Only 130-140 million Indians form the true “consuming class,” similar to Mexico’s market size. Another 300 million are emerging consumers but remain cautious spenders.
  • Premiumisation Trend: Companies are shifting toward luxury and premium products, evident in booming sales of high-end housing, branded goods, and concert tickets, while affordable options struggle.
  • K-Shaped Recovery: The rich are getting richer, while the poor and middle class face stagnant wages, shrinking savings, and rising debt.
  • AI & Job Disruptions: Automation is reducing white-collar and supervisory jobs, potentially impacting India’s consumption-driven economy in the long term.

Short-term boosts like a strong harvest and tax cuts may help, but the middle class’s financial strain could limit long-term growth. What do you think—can India overcome these structural challenges?

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