India likely to grow more than 6% between FY23-28: Goldman Sachs

Indian economy is likely to average more than 6% growth annually between 2023 and 2028, with the affluent consumers rising to 100 million by 2027 from 60 million in 2023, noted a Goldman Sachs research Friday.

"We extrapolated the growth rate between 2019 and 2023, which is around 12-13%, into the next four years, expecting a cohort of 100 million by 2027. And if the wealth effect is strong, it could be even more," said Arnab Mitra, analyst, Goldman Sachs.

In an article published on its website, Mitra claimed that the number of people using discretionary products and services in India is around 50-60 million, with income pyramid indicating nearly 60 million earning $10,000 per annum.


"The number of credit cards has grown by about 14-15%, for example. The tax filings we looked at, for more than 1 million rupees - they were growing at about 19%," he pointed as further evidence.

According to Goldman Sachs the number of persons earning more than $10,000 per annum were 20 million in 2011, which went up to 37 million before the pandemic in 2019.

"It's quite clear that companies that address this cohort exclusively, or largely, have been growing much faster than companies that address broad-based consumption, Mitra observed.