The middle class in India consumes more and more, but the speed and distribution are getting bigger and bigger. A recent report sheds light on a family that squanders a car or a paid professional when buying groceries, who are looking for bargains when hiring electricians, can plan a luxury vacation.
Why is the middle class consuming better?
The reason for the transition may be due to debt. People save less money and borrow more. Asia’s third-largest economy is expected to grow 7.2% in the fiscal year ending March 2025, the fastest among its major peers.
Oxford Economics predicts that the emerging market middle class will double in the next decade, expanding from 354 million households in 2024 to 687 million by 2034. By 2029, two out of every three middle-class consumers are expected to come from Asia. The biggest growth will come from China, India, Indonesia,
Philippines and Vietnam.
Mukherjea has made revenue stagnant the first major issue. “In the past 10 years, middle-class income has stagnated at about 100,000 yuan a year,” he explained, in fact, due to inflation, middle-class income has effectively halved. “The problem on a large scale…you can imagine what it does. People want to live a better life, but adjusting to inflation means that the middle class has to bear a lot of debt.”
The Reserve Bank of India also raised concerns about household debt levels, saying the need to closely monitor overall savings that have declined from averages in the previous decade. Despite savings, household debt continues to rise. Of the 37.9% in FY23, it increased to 41% of GDP in FY23, and is estimated to have reached 43.5% in the first half of FY25. Housing loans account for about 30% of that debt, but non-housing debt has increased significantly, reaching 32.3% of GDP by the second quarter.
India sees travel boom
The Navigation Vision report jointly prepared by Nangia NXT and FICCI says that outbound tourism is expected to grow to $55.39 billion in 2034.
He said the rise of “Gen Z” tourists – people born around the turn of the millennium will grow boutiques in design-driven hotels in the coming years. Young tourists spend more money on food and drinks, enjoy so-called wandering trips, blurring the lines between leisure and business.
The report said the availability of Indian or vegetarian foods and awareness of niche tourism will help increase the number and frequency of Indians from participating in foreign travel in the coming years. The market has seen growth in disposable income, growing middle class, flexibility in obtaining visas, and a desire for an international experience. “Countries such as Egypt, Azerbaijan and Georgia are known for their rich history, cultural heritage, natural beauty and unique terrain, which attract more and more Indians to venture abroad. These destinations are also often cheaper,” the report said. The tendency to explore international destinations is expected to continue to grow as cities and young people grow. Therefore, population trends may support the growth of outbound tourism in the near future.
Luxury goods:
India’s luxury goods are no longer unique to the elite. With the rise in disposable income, easier access to credit, and the growing impact of social media, middle-class families are embracing a quality lifestyle. Whether upgrading to a compact luxury SUV, investing in a designer way, or choosing high-tech gadgets, Indians are increasingly looking for an experience that exudes exclusive, quality and status. Young consumers are driving this trend, prioritizing self-investment in boutique fitness, gated communities and sustainable products. With the growth of advanced development, it requires not only brand, but also policy attention.
Advanced real estate options
In recent years, the Indian real estate market has witnessed a significant shift in consumer preferences. Driven by a change in desires and lifestyles, home buyers in the new era are increasingly inclined toward luxury homes, leaving behind an affordable housing sector that once had advantages. This paradigm shift highlights the evolving priorities of urban residents and the emerging demand for overall life experience.
India’s rapidly developing middle and upper classes are at the forefront of this trend. “The rise in disposable income, easy financing and global exposure all redefine aspirations. Today’s home buyers value comfort, convenience and status symbols, and all these luxury towns are expected to offer. Millennials, especially in this transformation. They play a major role in this transformation. Their preferences tend to be quality, emphasizing this quality, for this quality, for this quality, for sustainable living, and for affordable living, as well as affordable practicality, and for affordable. NBR Developer Managing Director Nagabhushan Reddy said:
