Emerging affluent Indians are extremely confident about their country’s economic prospects for the next year, citing a strong economy, strong government leadership and appropriate regulation, finds a recent Standard Chartered report. “The new government has brought inflation under control. Signs of economic growth and improved international relations are now visible,” says ‘The Emerging Affluence Report 2015’, a study of 7,000 emerging affluent consumers across China, Hong Kong, India, Indonesia, Kenya, Nigeria and Singapore. For emerging affluent Indians, the rising incomes are paving way for increased spending, with overseas travel being the top priority in the next five years. However, the long-term wealth goal is to buy property, the study finds. The study is significant because “As economic power continues to shift eastwards, these increasingly affluent, urban consumers in Asia and Africa are a key source of future demand for companies around the world.” Generally, the emerging affluent believe their market offers good job opportunities and future prospects for the younger generation. This is particularly the case in China, India and Indonesia, according to the 23-page report. The trend of increasing incomes is expected to continue next year. Nearly two-thirds of the emerging affluent have seen their household disposable income rise in the past year, with the figure significantly higher in China, India and Indonesia. The emerging affluent plan to save more of their disposable income next year, primarily for emergencies and retirement. On average, they expect to save 30 per cent of their total household income, up from 26 per cent in the past year. The emerging affluent in the developing markets (China, India, Indonesia, Kenya and Nigeria) are extremely optimistic about achieving their 10-year wealth aspirations. Although, confidence is slightly lower in Hong Kong and Singapore, the majority still believe that they will achieve their goals. Further, the levels of long-term confidence among the emerging affluent is typically greater than their confidence in the short-term growth prospects for their home market.
