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India isn't just rich in the general top 1% argument sense. India's upper middle class is quite rich. And more importantly invisible and hides everything. This
by kamaal 8y ago
India isn't just rich in the general top 1% argument sense. India's upper middle class is quite rich. And more importantly invisible and hides everything. This has been possible largely due to a combination of real estate prices going up due to urbanization, conservative spending and a rich investment driven culture.
The other factor is gold savings. Most families have a large amount of it, and provide good insulation against inflation.
Pretty much bulk of India's middle class got rich in the post 1992 era, when the market were opened up making it easy to do business. The software riches came due to US money flowing in, the salaries were high. And most people got to travel abroad. And given foreign exchange factor most people made a killing till 2005. Back then it was easy to get US visas and work there. The dollar paid 35 rupees a piece and land prices in most Indian metros(especially Bangalore) were quite cheap. People who bought lands anywhere in peripheral Bangalore have seen their wealth increase by crazy factors.
The other factor is again opening up of mass private sector hiring, subsequent growth in economy and the stock market.
And lastly of course, corruption, nepotism and dowry market.
- hkmurakami 8y agoCould you elaborate on the dowry “market”?
- kamaal 8y agohttps://en.wikipedia.org/wiki/Dowry_system_in_India https://en.wikipedia.org/wiki/Dowry_system_in_India Basically if you are a able male with a good income and family background, you ask for top money as gifts during marriage.
- hiyer 8y agoDowry is not so common among the (upper) middle class these days - with the exception of certain communities especially in Andhra/Telangana. Gifts are certainly given when the bride's side can afford it, but seldom extravagant and rarely asked for.
- mockingbirdy 8y agoIs the real estate market still good? I have family abroad and want to invest.
- kamaal 8y agoThat depends on what time scales you are looking at. Also staying Abroad and investing in India isn't a good thing to do. Sometimes there are encroachment issues.
- hiyer 8y agoThat's only if you buy land. Not if you buy an apartment or fully constructed house.
- sidm83 8y agoNot good. I've been tracking the prices in Mumbai which has the most expensive market with the least supply in India and prices have not moved since 2014. There is potential for drastic fall as per the unsold inventory which may take over 7 years to sell based on current sales numbers. The Delhi-NCR market has seen drops of 20-25% as its a much bigger market and developers do not have the financial muscle compared to the ones in Mumbai.
- sumedh 8y ago> There is potential for drastic fall as per the unsold inventory which may take over 7 years I have been hearing that for the last 7 years.
- ItsMe000001 8y agoDepending on context, does the potential for an event go away when the event does not occur for a long time? Much of the time I'd say that that has no information value whatsoever, and sometimes it may actually signal worse to come. So by itself I would claim the piece of data that you mention, accepting it at face value, is meaningless.
- 8y ago