11.3 crore new households will have an annual income of over Rs 30 lakh by FY31: U Grow
Sep 25, 2024
New Delhi [India], September 25 : The number of Indian households with an annual income of more than Rs 30 lakhs per annum will increase by 11.3 crores by the financial year 2031, according to a report by U Grow Capital.
The report also highlighted that the number of middle-class households having income between Rs 5 lac to Rs 10 lakh annually will also increase by 28.3 crore by 2031.
The report said "Estimates suggest that from FY21 to FY31, the number of affluent households (with annual incomes over Rs 3 mn) will increase by 113 mn, and middle-class households (with annual incomes between Rs 0.5-1 mn) will grow by 283 mn"
The report also highlighted that over the last 30 years, India has achieved an annual growth rate of over 7 per cent in 16, out of the 30 years. The current macroeconomic environment is highly favourable for sustaining this high growth phase, with key indicators showing strong signs of resilience.
For instance, the report added that India's core inflation is at a four-year low in FY24, the current account deficit has turned into a surplus, and the gross non-performing assets (GNPA) ratio has fallen to a multi-year low of 2.8 per cent as of March 2024.
These growing factors are providing a solid foundation for continued growth in Indian household income in the coming years.
Moreover, the report added that India's external sector remains robust, with key vulnerability indicators continuing to improve. India is on track to overtake Germany in terms of GDP by 2027, highlighting the country's growing economic stature on the global stage.
The report also emphasized that it's not only the domestic boost but India will also play a key role in the global growth. India's contribution to world GDP is expected to double between 2009 and 2029, reflecting its expanding role in the global economy.
"India's external sector remains resilient and the key external vulnerability indicators continue to improve. India is expected to grow strongly over the years, with its contribution to world GDP projected to double" the report added.
Additionally, per capita GDP of the country in US dollars is projected to double by 2029. This will further boost consumption and spending by Indian households. This rise in per capita income will also create new opportunities for businesses as consumer demand increases across various sectors.
