Nirmala Sitharaman: Middle class to drive 93% consumer-spending by 2036
India's middle class, together with the slightly affluent population, is on track to drive a massive 93% of all consumer spending by 2036, according to Finance Minister Nirmala Sitharaman.
She credits this surge to government moves like financial inclusion and welfare programs.
Right now, the middle-income group makes up about a third of the population and is playing a big part in keeping India's economy steady after the COVID-19 pandemic.
India's middle class surpass China 2030-35
Sitharaman highlighted that the middle class has been growing fast, about 6.3% annually between 1995 and 2021, which helped India recover from the pandemic.
By 2030 to 2035, India's middle-class population is expected to surpass China's.
Plus, Tier two and Tier three cities are becoming major shopping hubs, with at least 500 cities emerging as consumption centers thanks to rising incomes.