How India’s Middle Class Is Redefining The Consumer Economy

Little over a fortnight ago, PRICE or the People’s Research on the Indian Economy, released its latest report titled ‘India’s Middle Class’. The report argues that the growth of India’s middle class has crossed a tipping point. It is estimated at 432 million at present and is projected to grow to a staggering 1 billion by 2047.
This amazing transformation can be traced back to the 1970s when a little scooter, Hamara Bajaj, dared the Indian middle class to dream. The launch of the Maruti 800 in the mid-1980s was the tipping point in middle class mobility. This cohort never looked back after that as the Indian economy gradually unshackled, providing new opportunities for the middle class to grow and aspire.
It is poised to be the single biggest demographic cohort in India, displacing the poor. What does this mean for the consumer economy? Given that this cohort is not homogenous, with varying household incomes, how will this play out for FMCGs?
To answer all this and more we spoke to Nikhil Ojha, senior partner at Bain & Company.