Rise of the Indian Middle Class
Index : 1,874 | 1Yr : +56.12% | 1Mo : -0.48%
Category : Current Trends
Min Investment : 8,728
Perhaps the most important social development in India has been the rise of the neo middle class. They are seen as a group of consumers whose disposable income and spending patterns determine the success of corporations. There is a lack of clarity on the exact size of this group. However the consensus is that by 2020, around 20-30% of India's population is expected to be a part of the middle income group. As a result of their rising incomes, the consumption goes up thereby driving demand for goods and services. A growing middle class and economic growth of India are in a virtuous cycle. Higher incomes lead to higher consumption which leads to higher economic growth which leads to higher employment opportunities and subsequently higher wages.
The aspiration of this section of society will drive the growth in many sectors of the economy. However, higher disposable incomes have a direct impact on consumption spending and lifestyle upgradation expenses. Invest in this theme to derive the direct benefit of consumption spending from the rising middle class of India.