India’s Prosperity: 10 Crore Families Now Earn Over ₹10 Lakh Annually
India’s economy is rapidly reaching a stage where income levels, spending power, and consumption patterns are undergoing a fundamental transformation. A recent report by Franklin Templeton reveals that by 2031, India’s per capita income could reach ₹4.63 lakh, marking the country’s transition from a “low-income” to an “aspirational economy.”
10 Crore Families Now Earning Over ₹10 Lakh Annually
The report highlights that by the end of this year, the number of Indian families earning over ₹10 lakh annually will reach 10 crore. In 2013, there were only 6 crore such families — indicating that in just a decade, 4 crore new families have entered the upper middle-income segment. These families now account for about 40% of total national consumption.
Consumption to See Massive Growth
Analysts suggest that rising income directly impacts consumption. Over the coming years, India is expected to witness a surge in demand for cars, housing, electronics, FMCG products, and luxury brands. Between 2010 and 2024, India’s per capita income nearly doubled to ₹2.41 lakh. If the current growth continues, it is projected to surpass ₹4.63 lakh by 2031 — effectively doubling the average Indian’s spending capacity and fueling growth in premium products, travel, healthcare, and entertainment.
India Becoming an “Aspirational Economy”
The report notes that India has evolved from a “survival-based” to an “aspiration-driven” economy. People are now spending beyond basic necessities to improve their quality of life. Between 2024 and 2030, India’s GDP is expected to grow at a compound annual growth rate (CAGR) of 11%, reaching an estimated ₹644 lakh crore, with household consumption accounting for more than 60% of the total.
India to Become the World’s Third-Largest Consumer Market
According to the report, India is poised to become the third-largest consumer market globally by next year. Domestic consumption has grown from ₹88 lakh crore in 2013 to ₹185 lakh crore in 2024 — outpacing economies like the US, China, and Germany.
In September 2025 alone, Indian investors contributed ₹29,361 crore to mutual funds through SIPs (Systematic Investment Plans), up from ₹10,351 crore five years earlier — signaling that investment has become a regular financial habit for Indian households.
Rising Rural Spending and Market Expansion
Rural per capita monthly expenditure has risen from ₹1,429 in 2012 to ₹3,774 today. This shift is reshaping India’s consumption geography, creating new employment and business opportunities across sectors.
Rising Demand for Premium Products
The share of premium products in India’s FMCG market rose from 20% in 2020 to 30–35% in 2024. Experts predict this market could reach ₹5 lakh crore by 2025.
A Defining Moment for India’s Economy
Economists believe this decade could be a turning point for India’s economic future. The ongoing income surge is not just statistical — it represents India’s emergence as a global consumption powerhouse. If current trends continue, by 2031 India will not only be the world’s third-largest economy but also home to the largest spending middle class on the planet.