SHIMONA SHARMA
The North News
Chandigarh, February 27
A report by Blume Ventures has revealed that India’s “consuming class” consists of around 140 million people, while nearly 1 billion Indians lack the income for discretionary spending. The widening income gap poses challenges for India’s consumption-driven economy and businesses targeting mass-market consumers, according to Business World. The report highlights that the core consumer base for startups and businesses in India is relatively small, comparable to the population of Mexico. Additionally, around 300 million Indians fall into the “emerging” or “aspirant” consumer category—individuals who are beginning to spend but remain cautious. The growing adoption of digital payments is gradually encouraging more transactions, Business World reported.
However, the report also notes that India’s consuming class is not expanding significantly in numbers but is instead becoming more concentrated in wealth. This indicates a deepening divide, where the affluent population remains steady while the wealthy continue to accumulate financial power, reinforcing economic disparity.
The shifting consumer landscape is driving businesses to prioritize “premiumisation”—a strategy focused on catering to wealthier customers by offering high-end, expensive products. This trend is evident in the rising demand for luxury homes and premium smartphones, while budget-friendly options face increasing challenges. For instance, affordable housing, which accounted for 40% of the market five years ago, now represents only 18%, according to India Today.
