Middle-class Population In India To Double By 2047: Report – News18

India’s middle-class population is expected to nearly double by 2047, reveals the latest report. It will account for 61% of the total population, compared to 31% in 2020-21. This significant growth is attributed to the combination of ongoing political stability, economic reforms, and a consistent annual growth rate, ranging from 6% to 7% over the next 25 years. Consequently, India is set to become one of the world’s largest markets. According to the report The Rise of India’s Middle Class, released by the People Research on India’s Consumer Economy (PRICE) and India’s Citizen Environment, the findings are based on an analysis of primary data collected through a nationwide survey conducted by PRICE. The report is derived from responses received from 40,000 households across 25 states in India.

The report projects that the middle-class strength will increase from 432 million individuals in 2020-21 to 715 million (47%) by 2030-31. Furthermore, it predicts that by 2047, the middle class will comprise 1.02 billion people, accounting for 61% of India’s projected population of 1.66 billion. The think tank, recognising the absence of a universal definition for the middle class, defines a middle-class Indian as an individual earning between Rs 1.09 lakh and Rs 6.46 lakh per year (at 2020-21 prices), or in household terms, an annual income ranging from Rs 5 lakh to Rs 30 lakh. This specific income range is used to classify individuals within the middle-class category for their analysis and findings.

Amitabh Kant, the former CEO of NITI Aayog and India’s Group of Twenty Sherpa, had said in an interview earlier that the growth of the middle class will generate increased demand for quality healthcare, education, housing, and consumer goods. To support this growing middle-class population and achieve the vision of India becoming a fully developed country by 2047, the government will need to prioritise education, healthcare, and work opportunities. Amitabh Kant emphasised that the middle class should be the primary driver of India’s growth trajectory.

The report highlights another significant finding that India is projected to experience a substantial rise in the number of ‘super rich’ households during the current decade, leading up to 2030-31. These households, characterised by an annual income of over Rs 2 crore, are expected to increase fivefold. Notably, a significant portion of this growth is anticipated to come from rural areas. The number of super-rich households in India increased from 1.06 million in 2016 to 1.8 million in 2021, indicating a substantial upward trend.