- Overall approx. 5% of Indian Households have incomes above 100,000 Indian Rupees in 2006 (page 11).
- Considering McKinsey's projections (pages 12-13), by 2025 India will have
- 2% or 28 million people with incomes more than 100,00,00 Rupees
- 9% or 12.6 million people with incomes in the range 200,000 to 100,00,00 Rupees (data for 2000 "real" India Rupees.
- 28 million people in India will have household incomes of US$68000
- 12.6 million people in India will have household incomes of US$13600 to US$34000
- Of course the rest are poorer/lesser buying power/lesser income.
- Only 35% of the US population has an income of less than US$25,000
I still believe that there is more hype than substance in the India story. Of course there are some developments, but not like the ones we are seeing highlighted in the media or the stock bull run. It requires persistence, innovation and the Bottom of the Pyramid approaches to make margins in India. No wonder Tata launches Nano, an inexpensive car for US$2500.
(Hat Tip to Vinnie for the McKinsey Study)