India’s Economic Evolution: Surge in Super Rich Households and the Expanding Middle Class

India is undergoing an economic transformation, with super-rich households (earning ₹2 crore annually) set to grow from 1.8 million in 2020-21 to 32.7 million by 2046-47. Rich households earning over ₹30 lakh will also expand from 56 million to 437 million. Rural wealth growth now surpasses urban areas, while the middle class, projected to reach 1.02 billion by 2047, will drive 55% of consumption by 2031. This shift highlights rising affluence and the growing economic influence of middle-class and semi-urban India.

India is on track for a remarkable economic transformation, with the number of super-rich households projected to grow exponentially by 2030-31 and beyond. According to a report by People Research on India’s Consumer Economy (PRICE), an independent think tank, these households — defined as earning over ₹2 crore per year (approximately USD 270,000 at 2020-21 prices) — are expected to rise fivefold to 9.1 million by 2030-31 and further to 32.7 million by 2046-47.

This rapid growth reflects a broader trend of wealth accumulation across income brackets. The population of "rich" households, earning over ₹30 lakh annually, is also forecasted to increase from 56 million in 2020-21 to 437 million by 2046-47. The findings are based on PRICE’s ICE 360° pan-India survey, which analyzed data from 40,000 households spanning 25 states.

The Rise of the Super Rich

The super-rich category has witnessed the fastest growth among all income groups. Between 2015-16 and 2020-21, the number of super-rich households surged from 1.06 million to 1.81 million, marking an annual growth rate of 11.3%. This upward trajectory is expected to accelerate, with the number of households in this group projected to reach 46.7 million consumers by 2030-31 and 150 million by 2046-47.

While traditional economic hubs like Mumbai and Delhi continue to host a significant concentration of wealthy households, smaller cities like Surat, Nagpur, Bangalore, Ahmedabad, and Pune are emerging as new centers of affluence. Maharashtra leads the pack with 6.48 lakh super-rich households, followed by Delhi (1.81 lakh), Gujarat (1.41 lakh), Tamil Nadu (1.37 lakh), and Punjab (1.01 lakh).

The Expanding Middle Class: India’s Economic Backbone

In tandem with the rise of the super-rich, India’s middle class is poised to become the driving force of the economy. By 2047, the middle class is expected to encompass 1.02 billion people, nearly two-thirds of India’s projected population of 1.66 billion. Defined by an annual income range of ₹1.09 lakh to ₹6.46 lakh at 2020-21 prices, this segment will account for 55% of incremental consumption by 2031.

Currently, middle-class households — with annual incomes between ₹5 lakh and ₹30 lakh — contribute 50% of India’s total income, 48% of expenditure, and 52% of savings. In 2020-21, middle-class households saved ₹11.77 trillion and spent ₹62.22 trillion, demonstrating their pivotal role in driving domestic demand.

Rural Wealth Growth Outpaces Urban

Interestingly, wealth growth in rural areas has outpaced urban regions. Between 2015-16 and 2020-21, the annual growth rate for super-rich rural households was 14.2%, compared to 10.6% in urban areas. For households earning ₹1 crore to ₹2 crore annually, rural growth stood at 12%, surpassing urban growth of 9.4%.

These trends indicate a shift in wealth distribution, with central and eastern India experiencing the fastest growth in affluent households, particularly in rural and semi-urban areas. Meanwhile, western states like Maharashtra and Gujarat still dominate in terms of per capita income and density of super-rich households.

Consumption and Spending Patterns

The disparity in spending between income groups highlights the significant economic inequality that persists. A rich household spends an average of ₹20.47 lakh annually — nearly 25 times the expenditure of a destitute household (₹82,300) and three times that of a middle-class household. Rich households allocate a larger share of their income to luxury items, holidays, and higher education, whereas poorer households prioritize food, shelter, and healthcare.

Food expenditure, for instance, constitutes 44% of spending for rich households, compared to 67% for destitute households. Rich households also spend the most on education (8% of their expenditure), underscoring their ability to invest in long-term opportunities.

India's Poorest States: A Stark Contrast

The report also underscores the stark contrast between India’s richest and poorest regions. States like Bihar, Uttar Pradesh, West Bengal, Madhya Pradesh, and Odisha, which account for 40% of India’s households, are home to 56% of the destitute population but only 11% of the super-rich. In contrast, eight states, including Maharashtra, Tamil Nadu, and Delhi, host over three-fourths of India’s affluent households.

The Road Ahead

 As India approaches its centenary of independence in 2047, the economic landscape is set to be reshaped by the burgeoning middle class and the rising super-rich. The middle class, with its sheer size and purchasing power, will play a pivotal role in transforming India into one of the world’s largest consumer markets. Meanwhile, the growth of wealth in rural and semi-urban areas signals a broader democratization of economic opportunities.

Dr. Rajesh Shukla, Managing Director and CEO of PRICE, emphasizes the importance of the middle class: “Half of the nation’s income, expenditure, and savings come from this section. By 2031, 55% of incremental consumption will be driven by the middle class.”

As India’s economic engine accelerates, the interplay between the rising middle class and the growing super-rich will define the nation’s trajectory toward becoming a developed nation.