India's GDP Growth Is Impressive: Now Let's Universalize the Gains

The country's uneven economic emergence requires policymakers to focus on shared prosperity as much as overall output

- RAJESH SHUKLA

India's climb towards becoming the world's fourth-largest national economy is a defining moment in its development journey. With a national income of ₹336 trillion and aggregate household savings of ₹84 trillion, the country is gaining recognition not just as a large market, but as a rising economic power. Yet, while the numbers impress globally, the reality within reveals an important challenge: ensuring this growth enhances the disposable income and financial well-being of all Indians.

Estimates based on data from the PRICE ICE 360° survey offer valuable insights into how income, consumption, savings and debt are distributed across households. It reveals that India is not one economy, but three.

At the top, the richest 20% of households account for ₹155 trillion in income, save ₹57 trillion and consume just 63.6% of what they earn. In stark contrast, the bottom 20% earn ₹22 trillion but spend ₹23 trillion, resulting in negative savings and the highest debt-to-income ratio of 15.4%. The middle 60%, earning ₹159 trillion and saving ₹28 trillion, are the backbone of consumption but remain economically vulnerable.

These numbers highlight a macro-micro disconnect. India's 25% household saving rate and 11.9% average debt burden appear healthy in aggregate, but are deeply unequal in distribution. Without corrective action, this imbalance could undermine both financial resilience and the long-term stability needed to realize Viksit Bharat, India's vision of becoming a fully developed economy by 2047.