Indian middle class is growing fast, real fast. It is not the same what it was just a decade back. They were then branded as a conservative and thrifty people.
Not anymore, India’s middle class is now dynamic, educated, liberal and form the pillars of this vibrant Indian economy (due to their spending nature).
Here are the 10 fatcs that you may not know about Indian middle class.
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An average family of 4.3 people lives typically in a 900sf apartment; 71% own properties, but only 9% have a mortgage
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19% own cars, 100% of households have TVs, 91% have mobile phones and 20% have credit cards
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Household savings are low at 13% of annual income; mainly to meet emergency needs, healthcare and education costs.
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Risk aversion is high: 84% have not taken loans, only 11% have invested in equities (this is changing fast)Â
- Land and properties account for 51% of wealth, with 30% in cash and deposits
- Half of households have seen their income rise in the past 12 months, of which onethird saw income rise more than 20%
- 63% of respondents expect their income to increase in the next 12 months
- Slightly more than half say governance has worsened in the past 10 years; improving the economy and reducing corruption are seen as top priorities for the government.
- Children’s future and education a key concern and priority; other major concerns are rising prices and medical costs
- Very high aspirations for children with 43% wanting their kids to get a master’s degree and 29% a doctorate
Source: CLSA