India’s affluent class is expected to be 100 million by 2027, a report by Goldman Sachs stated on Friday, adding that the indigenous companies selling premium goods will outperform the broad-based rivals.
According to the Goldman report, the purchasing power of top earning Indians has increased in the past decade, due to a strong economic growth, stable monetary policy and high credit growth.
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As a result, the number of affluent Indians who earn above $10,000 ( ₹8.28 lakh) a year has skyrocketed from 24 million in 2015 to 60 million now. India, currently, the world’s fifth largest economy, is set to become the third largest by 2027, as per the International Monetary Fund.
India has witnessed rising spending power among the middle class which benefits firms with premium brands in leisure, jewellery, out-of-home good and healthcare, Bloomberg cited the Goldman report as saying.
The significant surge in value of financial and physical assets in India in the country in the past three years is driving an increasing wealth. gold and property are seen as important stores of wealth. There has been a drastic shift in households investing in equities via direct stocks or mutual funds over the last five years, the report added.
The Goldman Sachs cited that the divide between the spending power of the top earners and middle income groups remains the issue in India. More than 96 crore debit cards have been issued in the country and 9.30 crore Indians have postpaid cell phone connections. But only 3 crore Indians can afford a vehicle, the report added.