India's middle class expanding 6.3% a year, set to drive 93% of consumer spending by 2036

FM Sitharaman flags a widening consumption base: 31% of Indians now middle class, 248 million lifted from poverty, and wealth spreading to 500 Tier II/III cities. Signals a longer runway for retail expansion beyond metros through 2036.

— Filed Fri, 3 Jul, 2026, 21:54 IST · Source Forbes India · Updated

FM Sitharaman says India's middle class is growing 6.3% annually and will drive 93% of consumer spending by 2036, with wealth spreading to 500 Tier II/III cities—signaling expanding consumption base for retailers.

Why this matters

Sitharaman's data points to a longer runway for retail expansion beyond metros, as consumption spreads to 500 Tier II/III cities through 2036, reshaping where retailers target growth.

Retail-company signals are accelerating, up 538200% QoQ.