What Drives Gen Z's $860 Billion Spending Power and Why It Matters

With a staggering 377 million members, Gen Z is poised to redefine India's consumer landscape. Their unique preferences and immense purchasing power are set to drive a remarkable $2 trillion economy by 2035.

- ARITRA GHOSH

India’s Gen Z—currently estimated at 377 million individuals—is at the heart of the country’s rapidly evolving consumer landscape. This generation, born between the late 1990s and early 2010s, is shaping how brands across sectors operate, ushering in new trends, preferences, and behaviors.

GEN Z’S ECONOMIC POWER

As of 2023, Gen Z contributes a remarkable 43 percent of India’s total consumption, translating to $860 billion. This figure is projected to grow to a staggering $2 trillion by 2035, making Gen Z a key driver of India’s consumption economy. Pulkit Trivedi, Managing Director, India at Snap Inc., highlighted, “India is a young nation with a 377 million Gen Z population, which will shape the future of India’s growth in the next two decades. Gen Z will be the biggest contributor to India’s consumption growth, driving $1.8 trillion worth of direct spend by the year 2035.”

As more members of this generation enter the workforce—by 2025, one in two will be employed—their disposable income will increase, fueling demand across categories such as fashion, food, technology, entertainment, and more.

Nimisha Jain, Senior Partner and Managing Director at BCG India, summarized, “Gen Z is already driving 43 percent of India’s consumer spending. Their influence cuts across various categories. However, only 15 percent of brands are actively tapping into this opportunity.”

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