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India’s Rising Household Incomes Could Reshape Wealth Pyramid by FY31
India is expected to have more families earning higher incomes in the coming years.
The number of families earning less than ₹3 lakh a year is projected to fall.
More families may move into the ₹8–10 lakh and above-₹10-lakh income groups.
Together, these higher-income groups could grow from 12 crore households in FY26 to 16.2 crore by FY31.
This could give families more money to spend, save, and invest.
Household and nonprofit savings reached 21.70% of GDP in FY25.
Mutual fund investments from smaller cities also grew strongly between March 2021 and March 2026.
However, wealth is still not shared equally across the country.
The richest 10% of adults held about 65% of total wealth in 2025.
Households earning at least ₹8 lakh annually represented 34.38% of India’s population in FY26, projected to reach 42.74% by FY31.
Low-income households earning below ₹3 lakh are expected to decline from 13.5 crore in FY21 to 9.8 crore by FY31.
The ₹8–10 lakh household segment is projected to grow from 7.4 crore in FY26 to 9.8 crore by FY31.
Households earning above ₹10 lakh annually are expected to increase from 4.6 crore in FY26 to 6.4 crore by FY31.
Despite rising incomes and financialisation, the richest 10% of adults held about 65% of total wealth in 2025.
- Who
- Indian households, with data cited from the National Stock Exchange of India’s Red Herring Prospectus.
- What
- Household incomes are projected to shift from lower brackets toward middle- and higher-income categories by FY31.
- Where
- India, including households in cities beyond the largest urban centres.
- When
- The comparisons cover FY21, FY26, and projections for FY31; wealth concentration is reported for 2025.
- Why
- Rising incomes, digital access, and financial literacy are contributing to greater saving, investing, and ownership of financial assets.
Key facts
- FY26 ₹8 lakh-plus share
- 34.38% of India’s population
- FY31 projected ₹8 lakh-plus share
- 42.74% of India’s population
- Low-income households
- Projected to decline from 13.5 crore in FY21 to 9.8 crore in FY31
- FY31 projected total households
- 37.9 crore
- Household and NPISH savings
- 21.70% of GDP in FY25
- B30 mutual fund AUM
- Rose from ₹5.36 trillion in March 2021 to ₹13.89 trillion in March 2026
- Wealth concentration
- The top 10% of adults, about 14.6 crore people, held approximately 65% of total wealth in 2025
Sources
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