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According to the five income-segment classification of the Indicus urban consumer expenditure spectrum, in the second rung of affluence, or the upper middle class, among urban Indian households are those who earn between Rs. 5 lakh and Rs. 10 lakh annually. The population in these households comprise a little less than 10% of all urban households, but contribute around one-fifth of the total urban savings.
It is the upper-income segments that form the big savers of the country, with high-disposable incomes, making them attractive markets for financial products. They are also the spenders in the high value category, contributing to about 17% of urban consumer expenditure in India. While this share is approximately the same as the lowest two income segments, being a relatively smaller segment, expenditure per household would be relatively higher. Moreover, the type of goods and services consumed would, of course, be quite different across the income segments.
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