Can ‘Affluent India’ alone sustain consumption growth?

Goldman Sachs says companies that cater to the top of India’s pyramid will do well. But given how small the category is, investors cannot afford to neglect businesses that serve more than half a billion Indians.

I came across two high-profile reports in the past week. On 12 January, Goldman Sachs put out “The Rise of Affluent India”. On 15 January, Oxfam released “Inequality Inc.”, its annual report on wealth and income equality. The reports are a study in contrast. While the former continues to make waves among market observers and analysts, the latter—usually timed with the capitalist conclave at Davos—hardly moved any needles this year.

A reading of the two reports provides us with a “two Indias” lens to evaluate the consumption theme in the market available to investors. While one lens shows us …


Ujval Nanavati

Ujval leads our Business vertical at The Morning Context. In a corporate career spanning 14 years, he has worked across startups, consulting firms, multinational corporations and large Indian companies, including India Infoline, ICICI, KPMG, Tata Steel and Jubilant Pharma. Ujval has been a freelance writer and trainer for eight years, with bylines in Forbes India and The Economic Times.

Editor, Business