India, home to over 1.4 billion people, has nearly 1 billion individuals (100 crore) who lack sufficient income to spend on discretionary goods or services, according to media reports referencing a study by venture capital firm Blume Ventures. This means that approximately 90 per cent of the country’s population does not have the financial capacity to purchase non-essential items.
Only about 130-140 million (13-14 crore) people form India’s “consuming class”, the study estimates. The report mentions these individuals have disposable income beyond their basic needs and serve as the primary market for startups and consumer-driven businesses.
Another 300 million (30 crore) people are classified as “emerging” or “aspirant” consumers. While this group has begun spending more, boosted by the convenience of digital payments—they remain cautious buyers.
The report describes aspirant consumers as “heavy consumers and reluctant payers”. It highlights that industries like OTT/media, gaming, edtech, and lending are particularly relevant to this segment. The introduction of UPI and AutoPay has facilitated small-ticket transactions, encouraging greater participation from this group in the economy.
Rather than expanding widely, India’s consumer market is deepening, the report says, meaning that wealth is becoming more concentrated. Companies are increasingly focusing on premiumisation, a strategy that emphasises high-end, expensive products tailored for wealthier consumers. This trend is evident in the booming sales of luxury homes and premium smartphones, even as budget-friendly options struggle.
The findings reinforce the idea of a K-shaped economic recovery, where the rich continue to prosper while the poor face declining purchasing power
According to data cited in the report, the top 10 per cent of Indians now hold 57.7 per cent of national income, up from 34 per cent in 1990. Meanwhile, the bottom half of the population has seen its share decline from 22.2 per cent to 15 per cent.
The report concludes that India’s GDP remains heavily dependent on consumer spending. However, unless income distribution improves, businesses may increasingly cater only to high-income groups, further marginalising a significant portion of the population.