India: A billion people have no real money to spend, says report

India's population is 1.4 billion but its consuming class is only 140 million, or about as big as Mexico.

British Broadcasting CorporationWatch LiveHomeNewsSportBusinessInnovationCultureArtsTravelEarthAudioVideoLiveHomeNewsIsrael-Gaza WarWar in UkraineUS & CanadaUKUK PoliticsEnglandN. IrelandN. Ireland PoliticsScotlandScotland PoliticsWalesWales PoliticsAfricaAsiaChinaIndiaAustraliaEuropeLatin AmericaMiddle EastIn PicturesBBC InDepthBBC VerifySportBusinessExecutive LoungeTechnology of BusinessFuture of BusinessInnovationTechnologyScience & HealthArtificial IntelligenceAI v the MindCultureFilm & TVMusicArt & DesignStyleBooksEntertainment NewsArtsArts in MotionTravelDestinationsAfricaAntarcticaAsiaAustralia and PacificCaribbean & BermudaCentral AmericaEuropeMiddle EastNorth AmericaSouth AmericaWorld’s TableCulture & ExperiencesAdventuresThe SpeciaListEarthNatural WondersWeather & ScienceClimate SolutionsSustainable BusinessGreen LivingAudioPodcastsRadioAudio FAQsVideoLiveLive NewsLive SportHomeNewsSportBusinessInnovationCultureArtsTravelEarthAudioVideoLiveWeatherNewslettersBillion Indians have no spending money - report2 days agoShareSaveNikhil Inamdar, BBC News, Mumbai@Nik_inamdarShareSaveGetty ImagesFrom ceiling fans to jewellery, branded goods are capturing a bigger share of the Indian marketIndia is home to 1.4 billion people but around a billion lack money to spend on any discretionary goods or services, a new report estimates.

The country's consuming class, effectively the potential market for start-ups or business owners, is only about as big as Mexico, 130-140 million people, according to the report from Blume Ventures, a venture capital firm.

Another 300 million are "emerging" or "aspirant" consumers but they are reluctant spenders who have only just begun to open their purse strings, as click-of-a-button digital payments make it easy to transact.

What is more, the consuming class in Asia's third largest economy is not "widening" as much as it is "deepening", according to the report. That basically means India's wealthy population is not really growing in numbers, even though those who are already rich are getting even wealthier.

All of this is shaping the country's consumer market in distinct ways, particularly accelerating the trend of "premiumisation" where brands drive growth by doubling down on expensive, upgraded products catering to the wealthy, rather than focusing on mass-market offerings.

https://www.bbc.com/news/articles/c8rk5d7ekjmo

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