New Delhi: India will celebrate its first century of independence in 2047, along with the merry event, the country is expected to outgrow the present numbers of the middle class of 400 to 700 by the year 2046-47.

A report by the People Research on India’s Consumer Economy (PRICE) states that by 2030, 700 million of India’s population will be categorised as Middle-class.

The report formed its analysis through the data collected by PRICE through its ICE 360-degree pan-India survey, which is based on 40,000 households from 25 Indian states.

PRICE released a report – The Rise of India’s Middle Class: A Force to Recon With, released on July 5 states, “By the end of this decade, the structure of the country’s demographics will change from an inverted pyramid, signifying a small rich class and a very large low-income class, to a rudimentary diamond, where a significant part of the low-income class moves up to become part of Middle Class.”

According to the Economist Karan Mehrishi, it is of no surprise that such large middle-class numbers are projected owing to the rise in consumption that drives savings and investment.

The report further states that India’s average household income projection by 2031 is expected to be at Rs5-30 lakh at current prices.

With India’s GDP expected to increase to $20-25 trillion, by 2040-50, compared to $3.7 trillion at present, there is a huge scope for consumption demand, said Mehrishi.

Rich and Destitute

Households earning more than Rs 30 lakh per annum are classified as ‘rich’ and are expected to rise by 437 million by 2046-47 from 56 million in 2020-21.

On the other hand, ‘destitute’ Indian households- making less than Rs 1.25 lakh per annum is said to have decreased in numbers to 45.2 million in 2021-21 from 46.5 million in 2015-16.

Figures of destitute households have increased in urban areas every year in the five-year window by 7.3 per cent, however, these numbers for rural areas have only declined by 1.6 per cent each year.

PRICE estimates that the number of destitute households will reduce to 7.2 million by 2046-47.