India’s Growing Wealth: More Rich and Middle-Class Families by 2031
A report by U Grow Capital predicts a significant increase in the number of affluent and middle-class households in India by 2031. The number of households earning over Rs 30 lakhs annually is expected to rise by 11.3 crores, while those earning between Rs 5 lakhs to Rs 10 lakhs will increase by 28.3 crores.
The report highlights India’s strong economic growth, low core inflation, and improving external sector as key factors. Over the last 30 years, India has achieved an annual growth rate of over 7% in 16 out of those 30 years. Currently, India’s core inflation is at a four-year low, the current account deficit has turned into a surplus, and the gross non-performing assets (GNPA) ratio has fallen to a multi-year low of 2.8% as of March 2024.
India’s GDP is projected to surpass Germany’s by 2027, reflecting the country’s growing economic stature on the global stage. Additionally, India’s contribution to world GDP is expected to double between 2009 and 2029, and the per capita GDP in US dollars is projected to double by 2029. This will further boost consumption and spending by Indian households, creating new opportunities for businesses as consumer demand increases across various sectors.
Doubts Revealed
U Grow Capital -: U Grow Capital is a company that provides financial services and makes predictions about the economy. They study how money moves and grows in a country.
affluent -: Affluent means being very rich or having a lot of money. In this context, it refers to families that have a lot of wealth.
households -: Households are groups of people, usually families, who live together in a home. They share their money and resources.
Rs 30 lakhs -: Rs 30 lakhs means 30 lakh rupees, which is a way to say 3 million rupees. It’s a large amount of money in India.
core inflation -: Core inflation is the increase in the prices of goods and services, excluding food and energy costs. It shows how much more expensive things are getting over time.
external sector -: The external sector refers to a country’s trade with other countries. It includes exports (selling goods to other countries) and imports (buying goods from other countries).
GDP -: GDP stands for Gross Domestic Product. It is the total value of all goods and services produced in a country in a year. It shows how big and strong a country’s economy is.
per capita GDP -: Per capita GDP is the average amount of money each person in a country would get if the total GDP were divided equally among everyone. It helps to understand how wealthy the average person is.