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India’s Consumer Market to Reach $ 4.3 Trillion by 2030, Becoming World’s 2nd Largest

Written by: Team Angel OneUpdated on: Feb 3, 2025, 3:31 PM IST
India’s consumer market is projected to grow 46%, reaching ₹372 lakh crore (US$ 4.3 trillion) by 2030, driven by rising incomes, urbanisation, and digital adoption.
India’s Consumer Market to Reach $ 4.3 Trillion by 2030, Becoming World’s 2nd Largest
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As per news reports, India’s consumer spending is set to witness a 46% surge over the next 6 years, reaching a staggering ₹372 lakh crore (US$ 4.3 trillion) by 2030, up from ₹208 lakh crore (US$ 2.4 trillion) in 2024. This growth is attributed to rising incomes, a young workforce, and increased digital penetration, making India the world’s 2nd largest consumer market after China.

Rising Incomes and a Young Workforce to Drive Growth

India’s median age of 28 years is significantly lower than that of China and the US, ensuring a growing working-age population. Additionally, women’s labour force participation is increasing, adding to household incomes and expanding discretionary spending. These demographic advantages are expected to fuel consumption across sectors.

Urbanisation and Digital Revolution Reshaping Consumer Behaviour

With rapid urbanisation, Indian consumers are shifting from unorganised retail to branded and organised sectors. The move from unbranded to branded products alone is expected to unlock ₹52 lakh crore (US$ 600 billion) in additional consumer spending.

Moreover, e-commerce and digital payments are reshaping buying habits, making transactions seamless and widening market accessibility. As financial inclusion deepens, digital platforms are bridging the gap between urban and rural markets, leading to increased demand for premium products and services.

Rural Markets: An Untapped Consumer Opportunity

While urban areas remain the primary drivers, rural India holds immense potential. With rising incomes and improved financial access, rural consumers are increasingly investing in consumer durables and branded goods. As digital penetration expands, credit availability and aspirational spending in rural regions are expected to rise sharply.

The Road Ahead: India’s Shift Towards Premium Consumption

Easy access to credit and financing options is encouraging Indian consumers to upgrade to premium products in categories such as automobiles, electronics, fashion, and FMCG.

As India’s per capita income rises, the structural shift towards branded products and organised retail is laying the foundation for an unprecedented consumer boom. With favourable economic conditions, digital adoption, and a growing middle class, India is set to become a global consumption powerhouse by 2030.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing

Published on: Feb 3, 2025, 3:31 PM IST

Team Angel One

Team Angel One is a group of experienced financial writers that deliver insightful articles on the stock market, IPO, economy, personal finance, commodities and related categories.

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