Dhaka, Feb. 26 -- A new report reveals that while India has a population of 1.4 billion, nearly one billion people lack the financial means to spend on discretionary items or services.

The country's consumer class, which is the key market for businesses and startups, is only about 130-140 million people, equivalent to the population of Mexico, according to Blume Ventures, a venture capital firm.

An additional 300 million Indians are classified as "emerging" or "aspirant" consumers. However, these individuals are hesitant spenders who have only recently started to loosen their purse strings, aided by the rise of digital payments.

The report suggests that India's consuming class is not expanding as much as it is becoming wealthier, with ...