However, the income profile shows a classical pyramid-shaped society with only 600,000 households earning above Rs 18 lakh per annum, according to the Mr and Mrs India survey by brokerage firm CLSA Asia Pacific Markets.
The report said not only was the government's $500 billion infrastructure programme on the back burner, but the spread between private and public sector borrowing costs had widened, which is bad news for private investment spending. CLSA said tax revenues were crashing. It forecast that the public sector deficit, already 11 per cent of the GDP this fiscal year, would rise to 14 per cent in FY09/10.
The threat may be a decade away, but it has brick-and-mortar sellers rethinking their strategies and banking on the govt to regulate online companies.