90% Indians have no discretionary spending power: Blume Ventures Report
The top 10 percent of India’s population remains the primary driver of consumption and economic growth, Indus Valley Annual Report 2025 by Blume Ventures states.
India’s top 10 percent controlled 34 percent of national income in 1990, a figure that surged to 57.7 percent by 2025.
Nearly 100 crore Indians, 90 percent of the country’s population, lack discretionary spending power to purchase goods or services, according to media reports citing a study by venture capital firm Blume Ventures.
The top 10 percent of India’s population—equivalent to Mexico’s entire population of around 13-14 crore—remains the primary driver of consumption and economic growth, as highlighted in the Indus Valley Annual Report 2025 by Blume Ventures.
The report notes that this “consuming class” in Asia’s third-largest economy is not expanding in size but rather becoming wealthier, meaning the rich are getting richer while the overall number of wealthy individuals remains stagnant, according to a BBC analysis of the report.
Additionally, another 300 million people are categorised as “emerging” or “aspirant” consumers. These individuals have recently begun spending more but remain cautious with their expenditures.
‘Consuming class not widening, but deepening’
The report also stated that the latest consumption downturn has intensified, driven not only by a decline in purchasing power but also by a sharp drop in financial savings and a surge in mass indebtedness.
These consumption patterns have shaped India’s market strategy, with brands increasingly focusing on “premiumisation” rather than mass-market products. The report also highlights a shift in the real estate sector, where affordable housing now accounts for just 18 percent of the market, down from 40 percent five years ago.
India’s rising experience economy
Recent high-profile, sold-out concerts by Coldplay and Ed Sheeran were cited as evidence of India’s growing “experience economy.”
In the Union Budget presented earlier this month, Finance Minister Nirmala Sitharaman announced an income tax rebate for individuals earning up to Rs 12 lakh to boost middle-class spending power. This rebate will effectively exempt nearly 92 percent of salaried individuals from tax liability.
According to the Deccan Herald, India’s top 10 percent controlled 34 percent of national income in 1990, a figure that surged to 57.7 percent by 2025. In contrast, the bottom 50 percent saw their share of national income shrink from 22.2 percent to 15 percent over the same period.