Indian Affluent Households to Surge by 113 Million by FY31

An U Grow Capital report predicts that by 2031, the number of Indian households earning over Rs 30 lakh annually will surge by 11.3 crores, while middle-class households earning Rs 5-10 lakh annually will rise by 28.3 crores.

A report by U Grow Capital forecasts a significant increase in Indian household incomes by the financial year 2031. The number of households earning more than Rs 30 lakhs annually is expected to rise by 11.3 crores, while middle-class households with incomes between Rs 5 lakhs and Rs 10 lakhs will increase by 28.3 crores.

The report indicates that from FY21 to FY31, the number of affluent households (earning over Rs 3 million annually) will grow by 113 million, and middle-class households (earning between Rs 0.5 million to Rs 1 million annually) will grow by 283 million. India has achieved an annual growth rate of over 7 percent in 16 of the last 30 years, creating a favourable environment for sustaining high growth rates.

India's core inflation has reached a four-year low in FY24, and the gross non-performing assets ratio has dropped to a multi-year low of 2.8 percent as of March 2024. Additionally, India's external sector remains strong, with indicators showing improvements. The country is projected to overtake Germany in GDP by 2027, and its contribution to world GDP is expected to double between 2009 and 2029. This rise in per capita income is set to boost consumer spending and create new business opportunities.

(With inputs from agencies.)