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Celebrate the influence of affluence: it keeps the economy humming through good times and bad

India's wealthy-lifestyle economy significantly boosts premium goods and services consumption, driving economic growth and creating backward linkages to various industries. Luxury spending supports jobs and businesses, and is resilient to inflation and market fluctuations. Evidence shows a rising number of high-income earners sustaining this segment, exemplified by increased luxury car sales and high-end property investments. However, the author notes that aggregate demand, requiring spending from India’s multitudes, remains even more vital for accelerated GDP growth. Producers face saturation challenges, necessitating new products or new affluent consumers. The article presents a nuanced view of this economic phenomenon.

LiveMint · Madan Sabnavis · May 10, 2026 at 7:31 AM

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