| Sometimes I am really surprised when I hear or | | | | month. Now£100 per month is nowhere |
| read in the news that there is some strong 300 | | | | close to European or American middle class |
| million, middle class consumer base in India who | | | | earning standard, than assumption that India have |
| has almost same or comparable purchasing power | | | | 30 % or 300 million middle class populations who |
| as middle classes income group people in USA or | | | | have similar purchasing power as people in the |
| in Europe. | | | | USA or Europe??? At least I can't understand. |
| Well to put it straight, I completely disagree and | | | | The number of Indians who have the same |
| would like to say that there is no such 300 million, | | | | purchasing power as European or American could |
| middle class consumer base in India who has | | | | be hardly 1% to 1.2% i.e. about 10 to 12 million |
| purchasing power comparable to that in the | | | | only. |
| middle income group of Europe or America at | | | | In fact according to a latest National Sample |
| least till year 2008. | | | | Survey, 60.5% of the Indian population was |
| Also the spending power of middle and high | | | | capable of spending only Rs 20 a day (0.25 pence |
| income group Indians is highly overestimated by | | | | approximately). |
| experts from eminent consulting organizations. | | | | Not only that but this 10-12 million consumer of |
| The reason for this is that people who make | | | | high income group is not located in the small |
| these reports sit in their five star offices without | | | | pocket of India but all over India which is as large |
| ever actually going out to the Indian marketplace. | | | | as whole Europe with crippled infrastructure which |
| They never tried to look into the Indian consumer | | | | add to another problem of distribution. |
| mind about their spending habits. | | | | So it is obvious that all the big Multi National |
| Let's understand the myth of high purchasing | | | | Companies that enter into Indian retail market by |
| power; | | | | looking at the sheer numbers of population face |
| In India till now the total number of people who | | | | huge disappointment. |
| pay income tax is about only 31.5 million that is | | | | Issued in the interest of organisations, that are |
| only about 3 % of the total Indian population. | | | | planning or interested in doing business in India. |
| India has 31.5 million taxpayers; In a country of | | | | The author Subodh Gupta has worked for about |
| over a billion people, only 31.5 million people pay | | | | 12 years as an entrepreneur, an engineer, a guest |
| taxes, and this is after the number of taxpayers | | | | professor to various MBA schools and about 4 |
| has grown by nearly 11 percent between March | | | | years in the UK as a freelance trainer and |
| 2002 and March 2006. Now in India people start | | | | consultant. |
| paying tax only when their income goes above Rs | | | | He has organized training workshops for various |
| 1,00,000 or £1250 per year ( £1 = | | | | companies such as Oracle, International Data |
| 80 Rupee approx) ( this is the person income tax | | | | Corporation, Sapient, etc. in Delhi and London. |
| exemption limit till 2007 in India for men). | | | | The book "Doing Business in India and |
| So as per Indian Govt Tax official estimate only | | | | Understanding Pitfalls" is available for special |
| about 3 % of Indians earn more than | | | | discounts on bulk purchases (20 copies). |
| £1250 per year or about £100 per | | | | |