Daisy Watts
Nov 21, 2023
India, considered a third-world country, is undergoing an extraordinary upswing in the number of wealthy households, with a five-fold surge expected by 2031. Startlingly, a substantial portion of this growth is anticipated to come from rural areas, conventionally known as the home of the society’s destitute.
A study by People's Research on India's Consumer Economy and India's Citizen Environment (PRICE), the number of households garnering over 20 million Indian rupees ($243,230) per year nearly increased twofold in the last five years until 2021.
The progress rate of these prosperous households in villages outperformed that of urban areas. The study projects that the number of ultra-wealthy households will hit 9.1 million by 2031, predominantly driven by rapid growth in rural areas.
Rural regions are witnessing an increase in business people involved in market-oriented agriculture and non-agricultural activities, assisting in employment generation and socioeconomic improvement.
The mounting count of high-net-worth individuals in India has allured transnational asset managers and international banks, showcasing the country's thriving market of consumers. In addition to the riches growth, India's middle class is growing fast, projected to reach 715 million by 2031, while the "poor" class is envisaged to diminish by over half.
The study indicates that India's consumption-led growth story has a promising future, but addressing income inequality remains vital.
