India’s Aspirational Middle Class and Digital Economy Could Drive the Next Wave of Growth
India’s growing aspirational middle class is emerging as one of the country’s most important economic strengths, according to Roberto Italia, CEO of investment firm Verlinvest. In an interview with The Economic Times, Italia highlighted India’s young population, rising consumption ambitions, expanding digital ecosystem and entrepreneurial activity as factors that could continue to attract global capital.
The comments come as Verlinvest plans to significantly increase its investments in India, with a target of deploying around €1 billion over the next five years. The firm says it sees opportunities across consumer-focused sectors ranging from healthcare and fitness to entertainment and digital content.
Why India’s Middle Class Matters to Investors
For Italia, India’s demographic profile is closely connected to its consumption potential. A growing share of the population aspires to improve its standard of living, with education, better products and new experiences becoming increasingly important priorities.
That aspiration can translate into higher spending as household incomes and access to products and services expand. From an investment perspective, this creates opportunities for businesses that can address changing consumer preferences rather than simply compete on basic affordability.
The opportunity is not limited to India’s largest metropolitan areas. Italia pointed to entrepreneurial activity and consumer dynamism in smaller cities as another important feature of the Indian market.
This suggests that the next phase of consumer growth could increasingly come from beyond the traditional major urban centres. Businesses able to build distribution, digital reach and brand recognition across these markets could benefit from a wider consumer base.
Verlinvest Plans Up to €1 Billion in New Investments
Verlinvest currently manages around €2 billion in assets and has invested in a range of consumer businesses internationally. The firm has already invested in Indian companies and says its experience in the country has encouraged it to become more aggressive.
Its India strategy could involve deploying approximately €100 million to €200 million annually, according to Arjun Anand, Verlinvest’s Head of Asia. The investment approach is flexible, ranging from venture investments in smaller companies to significant minority positions and control transactions.
The firm has identified healthcare, fitness, live entertainment, digital content and sneakers among areas where it sees potential growth.
For Indian entrepreneurs, such interest is significant because it indicates that international investors are looking beyond traditional sectors and increasingly examining consumer services and experience-led businesses.
India’s Digital Revolution Is Changing Consumption
Another major theme in Italia’s assessment is India’s rapid digital transformation.
Mobile phones, high-speed connectivity and digital services have changed how consumers discover products, compare options and make purchases. The transformation extends across areas such as food retail, quick commerce, travel and financial services.
Digital platforms have also created entirely new forms of economic activity. Influencer-led businesses, digital content and other internet-based services were far less prominent several decades ago but are now part of the consumer economy.
The important point for businesses is that digital infrastructure is not simply another distribution channel. It can influence how consumers receive information, interact with brands and ultimately decide where to spend their money.
From Consumer Brands to Consumer Services
Verlinvest has historically backed consumer brands, particularly in beverages and food. Its Indian investments have included businesses such as Sula, while other investments have included brands such as Lahori and Blue Tokai.
However, the firm's strategy has increasingly expanded beyond traditional consumer products toward services and experiences.
Healthcare is one example. Verlinvest has invested in Eye Foundation, an ophthalmology chain, while its broader portfolio also includes businesses addressing areas such as senior care.
This shift reflects a wider opportunity in India: rising consumer aspirations can create demand not only for products but also for services that improve quality of life, convenience and personal wellbeing.
Patient Capital Could Become an Advantage
Verlinvest also differs from many investment firms because its capital structure allows it to take a longer-term approach. The company says it is not under the same pressure to deploy capital or exit investments quickly as some listed private-equity businesses.
That flexibility can matter in a market where valuations and public-market conditions change significantly over time.
Anand cited the firm's investment in sauces company Veeba, where it has remained invested for about a decade, as an example of its long-term approach. The firm believes patient capital allows it to navigate different market cycles and avoid rushing companies toward public listings when conditions are unfavourable.
What This Means for India’s Growth Story
The investment outlook described by Italia highlights three interconnected forces: demographics, consumption and technology.
India’s young population provides a large potential consumer base, while rising aspirations can support demand for better products and services. At the same time, digital infrastructure allows companies to reach consumers faster and operate new business models.
However, demographic advantage alone does not guarantee economic success. Businesses still need sustainable economics, strong execution and products that consumers genuinely value. For investors, the opportunity therefore lies in identifying companies capable of converting India’s expanding consumer potential into durable growth.
Verlinvest’s decision to potentially deploy €1 billion over five years is one indication of how international investors view that opportunity.
For Indian consumers, entrepreneurs and businesses, the larger trend is equally important: the country’s economic growth is increasingly being shaped not only by its population size, but by what that population wants to buy, experience and build in the years ahead.
