Rising incomes and expanding middle class

The report highlights that by the end of 2024, the number of Indian families earning ₹10 lakh or more annually will reach 10 crore (100 million) — up from 6 crore in 2013. These households will contribute nearly 40% of the country’s total consumption, driving surges in demand for cars, homes, and FMCG products.

Between 2010 and 2024, India’s per capita income has doubled to ₹2.41 lakh per year, and is projected to rise further to ₹4.63 lakh by 2031. With this growth, spending on premium goods, travel, and healthcare is expected to rise significantly.

India’s shift to an aspiration-driven economy

The report describes India as an aspiration-driven economy, fueling sustained GDP growth. Between 2024 and 2030, the country’s nominal GDP is projected to grow at a compound annual rate of 11%, reaching ₹644 lakh crore. Domestic consumption is expected to account for 60% of the total GDP, positioning India as the world’s third-largest consumer market as early as next year.

Private consumption has already jumped from ₹88 lakh crore in 2013 to ₹185 lakh crore in 2024, outpacing growth seen in China, the U.S., and Germany.

Three key indicators of progress

1. Savings and Investments: Monthly investments in SIPs reached ₹29,361 crore in September 2025, compared to ₹10,351 crore five years ago.

2. Rapid Urbanisation: The urban population has grown from 32% in 2013 to 40%, while rural per capita expenditure increased from ₹1,429 in 2012 to ₹3,774.

3. Premium Purchases: The share of premium products in the FMCG sector has risen from 20% in 2020 to 30–35% in 2024, making it a ₹5 lakh crore market by 2025.

Overall, the findings point to a fast-transforming Indian economy—driven by higher incomes, aspirational spending, and expanding urban lifestyles