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