A Goldman Sachs report said on Friday that India's wealthy class is expected to number 100 million by 2027 and that homegrown companies selling premium goods will outperform broad-based rivals. According to the Goldman report, the purchasing power of top earners in India has increased over the last decade due to strong economic growth, stable monetary policy and high credit growth. ALSO READ: India is a growth engine: Prime Minister for world and business leadersAs a result, the number of wealthy Indians earning over $10,000 is increasing ( ₹8.28 lakh) per year has jumped from 24 million in 2015 to 60 million now. India, currently the world's fifth-largest economy, will become the third-largest economy by 2027, according to the International Monetary Fund. In India, the purchasing power of the middle class has increased, benefiting companies with premium brands in leisure, jewelry, out-of-home goods and healthcare, Bloomberg quoted the Goldman report as saying.
The significant increase in the value of financial and physical assets in India over the last three years is leading to increasing prosperity. Gold and property are considered important stores of wealth. The report added that over the last five years, there has been a drastic shift in households investing in stocks through direct stocks or mutual funds.
Goldman Sachs said the gap between the purchasing power of top and middle earners in India remains a problem. More than 96 crore debit cards have been issued in the country and 9.30 crore Indians have postpaid mobile lines. But only 3 million Indians can afford a vehicle, the report added. (With Bloomberg input)
“Beer maven. Creator. Tv fanatic. Internet scholar. Award-winning web junkie. Avid alcohol expert. Friendly writer. Gamer.”