Most Americans perception of both India and China is wildly out of date. The view that these countries are immersed in abject poverty is simply no longer true. While both countries do have hundreds of millions of people living in extreme poverty, the sheer size of their populations (China 1.3 Billion; India 1.1 Billion) means they also have very large middle classes.
A recent anaytic report by the renowned consulting firm McKinsey & Company speaks to this point about India:
India’s rising middle class wants a better life
The same furious energy that made India a world-class provider of software and business services is creating a huge urban middle class. By 2025, household spending could more than quadruple, generating the 5th-largest consumer economy on Earth, up from 12th now. About 400 million Indian city dwellers—nearly 100 million more people than the United States has today—will enjoy comfortable living standards. Even India’s most affluent consumers will outnumber not only the comparable segment in China but also the entire current population of Australia.