New Delhi, June 23 -- India is witnessing the largest middle-class expansion in modern history, second only to China, according to the Draft Red Herring Prospectus (DRHP) filed by the National Stock Exchange (NSE). The rising incomes are creating a larger middle-class and affluent population, driving demand for financial products, investments, and premium consumption.

Households earning beyond Rs.0.80 million are projected to rise from 34.38% of the population in FY26 to 42.74% by FY31. Upper-income and ultra-high-income segments (above Rs.2.50 million annual income) are expanding the fastest, creating a broader market for premium goods and financial services.

The NSE IPO DRHP categorises households into four income groups based on annu...