The riches in India are for the making! My wife went a few months back and was sitting with a real estate agent discussing some investment opportunity and saw people come in by dozens willing to invest anywhere from Rs 40 lacs to over 2 crores.. and they were ready with cash!
Here is another confirmation of "India Shining" – albeit a certain section.. the households with OVER Rs 45 lacs of annual income are more than 1.8 million!
If one were to believe Arvind Singhal, chairman of the management consultancy KSA Technopak, by the end of 2007, India will have more than 1.8 million Sanjay Prabhus, i.e., households with annual incomes above Rs 45 lakh. That tots up to 6 million Indians.
Singhal and his team have met over 4,000 affluent consumers spread over 12 cities across the country to map the emerging super-rich category. The KSA Technopak study finds that the chief earners in such households are 35 years old or more and one-third of them have men and women with professional qualifications. “Almost 70 per cent of such households are engaged in business. Significantly, 20 per cent comprise executives,” says Singhal. “The traditional rich comprise less than 1 per cent.”
Each household in this new class will spend about Rs 400,000 lakh a year on luxury and premium goods and services. That works out to a market potential of Rs 72,000 crore. It’s a story of first-time wealth creators. “The 45-lakh plus households are growing at an incredible rate of 12 per cent. That works out to at least 216,000 new households every year. Indians are getting rich,” says Singhal.
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