Reaching India 1, India 2 and India 3 - A PR Playbook for Healthcare Brands

India’s economic landscape is complex and evolving and cannot be understood through broad generalizations. To capture the nuances of income disparity and consumption patterns, the Indian population can be segmented into three distinct economic strata: India 1, India 2 and India 3. Blume Ventures introduced these classifications, which provide a structured way to analyze how different income groups contribute to the economy, their consumption patterns, and the opportunities and challenges they present for businesses and policymakers.

India 1: The Consuming Class

India 1 represents the top 10% of the population, comprising approximately 30 million households (~14 crore people) with an average per capita income of $15,000. This segment is the engine of India's economic growth, accounting for nearly two-thirds of discretionary spending. India 1 comprises urban professionals, entrepreneurs, and affluent households who are significant contributors to the stock market, luxury real estate, travel, premium brands, and high-end services.

Key Characteristics of India 1

1. High Purchasing Power: This group drives India's luxury and premium consumer segments, from high-end automobiles to international travel
2. Investment in Financial Markets: A large portion of India 1’s surplus savings is funnelled into equities, mutual funds, and derivative trading, making India one of the world’s largest derivatives markets
3. Global Exposure: Many in this segment have international education and business exposure, influencing their consumption choices and aspirations
4. Urban Concentration: India 1 is heavily concentrated in metros and Tier-1 cities

India 2: The Aspirational Class

India 2 consists of 70 million households (~30 crore people) with a per capita income of $3,000. This group forms the emerging middle class, representing individuals who aspire to climb the economic ladder but still face financial constraints. They are heavy consumers of media, digital payments, e-commerce, and small-ticket financial products but remain price-sensitive.

Key Characteristics of India 2

1. Value-Conscious Consumers: India 2 seeks affordability and value in its purchases, making it a key market for affordable smartphones, budget airlines, and online education
2. Digitally Connected: This group has embraced UPI, OTT platforms, and fintech solutions, but their discretionary spending remains limited compared to India 1
3. High Potential for Economic Mobility: India 2 represents the fastest-growing segment, with aspirations for upward mobility, making it an attractive target for businesses and policymakers
4. Majority in Tier-2 and Tier-3 Cities: Cities like Jaipur, Lucknow, and Coimbatore house a significant portion of this segment, where digital adoption is rising rapidly

India 3: The Underprivileged Majority

India 3 includes 205 million households (~100 crore people) with a per capita income of $1,000 or lower. This segment struggles with necessities, financial inclusion and access to quality healthcare and education. While they constitute the largest share of India’s population, their contribution to formal consumption markets is minimal.

Key Characteristics of India 3

1. Low Discretionary Spending: Most of their income is spent on food, basic healthcare, and essential goods, leaving little room for discretionary spending
2. Rural and Informal Workforce: The majority live in rural areas or urban slums, working in agriculture, daily wage labour, or informal sectors
3. Limited Financial Inclusion: Although government initiatives like Jan Dhan Yojana have increased financial penetration, access to credit remains limited
4. High Dependency on Government Welfare: Schemes like PM-Kisan, MGNREGA, and PDS play a crucial role in sustaining this population

Implications for Healthcare Businesses and Policymakers

The Indus Valley Report 2025 has showcased that a one-size-fits-all PR strategy won’t work in India's diverse healthcare landscape. The PR strategy needs to be segmented to ensure that premium, value-driven, and essential healthcare services reach the right audience effectively. I am providing below a broad PR approach tailored for Pharmaceuticals, Medtech, Hospitals, and Healthcare Startups, addressing India1, India2, and India3 effectively:

Please Note: Feel free to message me to get the details that are listed in the image above.