India’s affluent population is growing by double digits

Affluent population growing: The Indian economy has gone through many phases in the past. But in the past few years, the economy has gone through a major facelift which is showing in the behaviour of consumers and people as well. According to a recent report by Goldman Sachs, the number of people in ‘Affluent India’ has been growing by a double-digit CAGR over FY19-23, compared to the overall population CAGR in India of 1 per cent. 

“Assuming the growth rate at ~13 per cent CAGR of the past 4 years sustains over the next 4 years as well, we expect Affluent India’s population to rise from ~60mn in 2023 to ~100mn in 2027,” the report added.  

Affluent Population Zooming

The total number of people with an income over $10,000 in the working-age population of India has grown at a CAGR of 12.6 per cent over FY19-23, as per Euromonitor. This compares with the overall working-age population CAGR in India of 1.4 per cent over FY19-23. 

The total number of individuals filing income tax returns disclosing income of over Rs 1 million (~$12,000) has grown at a CAGR of ~19 per cent over AY17-22, compared to the overall growth of income tax filings which has grown at a CAGR of 8 per cent in the same period. 

Bank term deposits

The number of individual term deposits in banks above Rs 1.5 million ($18,500) has grown at a CAGR of 45 per cent over FY19-23, while the number of term deposits below Rs 1.5 million has grown at a CAGR of 3 per cent over the same period. 

Credit card numbers

The number of credit cards in India has grown at a CAGR of 16 per cent over FY19-23, compared to the number of debit cards which grew at a CAGR of ~1 per cent in the same period.  There were 85 million credit cards in India in FY23, compared to 960 million debit cards.