Consumer

The Rich Are Splashing Out While the Middle-Class Cut Back in India

Consumer firms expect slow growth as buyers reduce purchases
Small borrowers are binging on debt due to weak income

Slowing wage growth and elevated inflation has resulted in financial stress for lower-income earners, forcing them to forgo or cut back on purchases, even as the rich splurge. — Slowing wage growth and elevated inflation has resulted in financial stress for lower-income earners, forcing them to forgo or cut back on purchases, even as the rich splurge.
Photographer: Dhiraj Singh/Bloomberg

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By Ruchi Bhatia and Satviki Sanjay

January 9, 2025 at 11:30 PM UTC

Updated on

January 10, 2025 at 4:51 AM UTC

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While India’s 100 million wealthiest people are splurging on weddings, jewelry, and top-end apartments, over 400 million of their middle-class compatriots are cutting back on the purchases of consumables like cooking oil, soaps, and biscuits.