Many companies targeted their growth strategies at high-income households, and the cocktail circuit was abuzz with details of the latest iconic apartment deal. In the commercial capital, Mumbai, apartment sales topped $2,500 per square foot—twice the going rate in cities like Shanghai. Last year’s global meltdown led to a sudden stop in all such activity.

As India now emerges from the boom-bust growth cycle, the masses are firmly leading the recovery even as the upper classes remain conspicuous by their absence at stores. Two-wheeler sales are up nearly 15 percent so far in 2009, compared with an average growth of 5 percent over the past five years. Small-car sales have increased by 20 percent in recent months, while purchases of luxury cars are down 20 percent from a year ago. Consumer-goods companies are reporting a bipolar market: widely used products from hair oil to soaps are selling well, but more expensive skin-treatment items are not.