As per a Goldman Sachs report, the count of “affluent” Indians, individuals earning $10,000 or more annually, has surged 12 times faster than the overall population in the last four years, with an expected count of 100 million by 2027. This growing affluent class is significantly impacting consumption in areas like leisure, jewelry, out-of-home food, healthcare, and premium brands, with mid-teen growth anticipated in the medium term. The report highlights the outpacing growth of the affluent segment within the working-age population, contributing to a positive impact on various sectors.
The report reveals that the affluent population in India has grown at a compounded annual rate (CAGR) of 12% between 2019 and 2023, reaching 60 million. This contrasts with the country’s overall population, which expanded at a CAGR of 1%. The working-age segment of this affluent population, accounting for 44 million individuals, has witnessed a growth rate of 12.6%, outpacing the total working-age population growth.
Around 4% of the working-age population qualifies as “affluent,” as per the report’s classification. Income tax filings during the 2017-22 assessment years increased at an 8% CAGR, with the number of individuals filing returns showing income over $12,048.19 growing at an impressive 19%.
The report also delves into the financial landscape, noting that term deposits of $18,072.29 and above in banks expanded at a remarkable 45% CAGR between fiscal years 2019 and 2023. In contrast, deposits below this threshold experienced a mere 3% growth. Additionally, credit card spending has surged 2.5 times in the past 12 months compared to FY19.
Notably, the report highlights ‘Affluent India’ stocks, emphasizing discretionary categories such as leisure, jewelry, out-of-home food, healthcare, and premium brands. This group of companies is projected to witness a 7% increase in FY24 revenue, according to consensus analyst estimates, outperforming the broader-based consumption companies, which are expected to see a 3% decline in revenue.
