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The middle class in India has grown at 6.3% annually from 1995 to 2021 and now comprises 31% of the population, says the Red Lab ‘Rising to a Billion’ report.
By 2031, this is expected to reach 38% and by 2047, 60%, meaning over 1 billion Indians will be Middle Class, the report says.
While the Seekers (?5–15 lakh) prioritize essentials like food, education, and healthcare, the Strivers (?15–30 lakh) spend more on real estate, premium goods, and better education.
Despite higher earnings, rising costs of living, education, healthcare, and housing put financial pressure on this group.
Among the economic challenges highlighted by the report are: Inflation & Stagnant Wages: Food inflation hit 9.7% in 2023, and corporate profits are rising faster than wages.
Debt Burden: Household financial savings dropped from 11.5% of GDP in 2021 to 5.1% in 2023 as more people rely on loans.
Healthcare & Education Costs: Healthcare costs are rising 14% annually, with 62% of expenses out-of-pocket. Education expenses take up 20-30% of a family's annual income.
Housing Affordability: Property prices surged 46% in 4 years, making home ownership difficult.
Job Insecurity: 47% of Indian employees fear job loss, especially in IT and automation-driven industries.
By 2031, India’s Middle Class will drive 55% of consumer spending, rising from $1.9 trillion to $5.2 trillion.
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