100 Crore Indians Lack Extra Money to Spend: Report

India's massive population of over 143 crore actually has a minimal group of people who actively spend on non-essential goods and services. According to a recent report, only 13-14 crore Indians constitute the country's "consumer class." The consumer class is defined as those people who have enough disposable income to buy beyond basic needs. 

If we delve deep into further findings of the report, it says that the country's GDP is heavily dependent on consumer spending. The consumer class, which constitutes roughly about 14 crores, effectively constitutes the market for most startups. There are another 30 crore people who are defined as "aspirant" or "emerging" consumers. These are people who are in a position to purchase beyond their basic needs but remain cautious buyers. 

The report mentions that these 30 crore people are heavy consumers but reluctant payers. OTT/Media, Gaming, Edtech, and Lending are relevant markets for them. The advent of the UPI and Autopay has opened up small ticket spends and transactions from this group. 

What's concerning to note is that around 1 billion (100 crores) people do not have the kind of income to be able to spend on discretionary goods. India's consumer market is not expanding widely but deepening. This means that the rich are getting richer, and the number of rich people isn't growing significantly. 

The report points out that after the pandemic, India's economic recovery has been "K-shaped", which means that the rich continue to prosper while the poor continue to struggle. Another report indicates that the middle 50% of India's tax-paying population has seen little to no wage growth over the past decade. This financial beatdown has decimated the middle class's savings. RBI also revealed recently that the net financial savings of Indian households are approaching a 50-year low. 

The advent of AI might pose further problems for India. While technology can boost productivity, it can disrupt the country's labor-intensive economy. Even though AI's impact on jobs remains certain, complacency might turn costly for India according to the recent economic survey 2025 report.