5 charts from Goldman Sachs that capture rapid rise of 'Affluent India'

The number of credit cards in India has grown at a CAGR of 16 percent over FY19-23, compared to the number of debit cards which grew at a CAGR of around 1 percent in the same period. (Photo by Karolina Grabowska/Pexels)

Using data gathered from various sources, from tax filings and bank accounts to credit card issuances and mobile phone subscriptions, analysts at Goldman Sachs have found the rapid increase of a demographic in India.

In the recent report titled "The rise of the Affluent India", the analysts have said that people who earn $10,000 annually have grown at a rapid clip. The number of these affluent Indians have grown at 12 percent CAGR over 2019-23 versus the 1 percent CAGR of India's population.

Also read: 'Affluent India' growing at 12% vs total population's 1%, divergence seen in stock performance: Goldman Sachs

Here are the five charts that illustrate this trend.

1. The total number of people with an income over $10,000 in the working age population of India has grown at a CAGR of 12.6 percent over FY19 23,as per Euromonitor. This compares with the overall working age population CAGR in India of 1.4 percent over FY19-23.

2. The total number of individuals filing income tax returns disclosing income of over Rs 1 million (~$12,000) has grown at a CAGR of~19 percent over AY17-22, compared to the overall growth of income tax filings which has grown at a CAGR of 8 percent in the same period.

3. The number of individual term deposits in banks above Rs 1.5 million (~$18,500) has grown at a CAGR of 45 percent over FY19-23, while the number of term deposits below the Rs 1.5 million has grown at a CAGR of 3 percent over the same period.

4. The number of credit cards in India has grown at a CAGR of 16 percent over FY19-23, compared to the number of debit cards which grew at a CAGR of around 1 percent in the same period. There were ~85 million credit cards in India in FY23, compared to ~960 million debit cards.

Also read: 8 stocks that stand to profit from ‘Affluent India’, according to Goldman Sachs

5. The number of post-paid connections rose by nearly 30 percent over FY21-22.